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UAE Central Bank Launches ‘Digital Dirham’ CBDC Strategy

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After announcing its plans in February, the central bank of the United Arab Emirates (UAE) recently unveiled a new strategy that will provide the infrastructure and technology to issue its central bank digital currency (central bank digital currency) are called “digital dirhams”.

Namely, the deployment of a digital version of the dirham under the ‘Digital Dirham’ strategy is part of the nine key initiatives of the country’s Financial Infrastructure Transformation (FIT) plan, according to the central bank Press release Published March 23.

According to the announcement, the first phase of the strategy will take place over the next 12 to 15 months and include three pillars – the soft launch of mBridge for real-value cross-border CBDC transactions in international trade settlements; Proof of Concept (PoC) for CBDC Bridge; PoC for Domestic CBDC in Wholesale and Retail.

Commenting on the recent developments, CBUAE Governor Khaled Mohamed Balama said:

“The CBDC is part of the CBUAE FIT initiative, which will further strengthen and solidify the UAE’s position as a leading global financial center. (…) The launch of our CBDC strategy marks a key step in the country’s monetary and payments development.”

As a reminder, the Central Bank of the UAE Announce Its FIT program is in February and mid-March, sign Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI), which states that the central bank bank A joint PoC and bilateral CBDC bridge pilot will be conducted to facilitate cross-border CBDC remittance and trade transactions.

CBDCs around the world

Elsewhere, CBDCs have been a hot topic political debate In the United States, Congressman Tom Emmer express concern Fearing they could be “easily weaponized” as surveillance tools to spy on U.S. citizens, Bank of America (NYSE: BAC) say CBDC can revolutionize money.

Seeks to stop Fed from launching digital dollar project and protect U.S. citizens financial privacy, emer introduce The CBDC anti-surveillance bill in February argues that any digital version of the U.S. dollar would need to “preserve America’s values ​​of privacy, individual sovereignty, and free-market competitiveness.”

At the same time, the European Central Bank (European Central Bank) is working on its digital euro registry, which it announced should Prioritize e-commerce and person-to-person paymentsand the rest of the use cases will follow in the second phase of its CBDC development.

Meanwhile, the Bank for International Settlements (BIS) finalize The “Icebreakers” project is working with the central banks of Israel, Sweden and Norway to explore the potential advantages and challenges of using CBDC in international payments, fine ball reports.

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