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DUBAI, Oct 26 (Reuters) – The Central Bank of the United Arab Emirates (CBUAE) said on Wednesday it had completed the world’s largest pilot of a central bank digital currency (CBDC) transaction with other regulators including the People’s Bank of China digital currency . graduate School.
“Project mBridge demonstrates faster, cost-effective and secure cross-border monetary settlements using central bank funds, identified as a G20 economic priority,” said CBUAE, adding that it will have positive effects on regional and international trade and participating entities influences.
The pilot is part of the mBridge project, which conducts cross-border payments trials using a common distributed ledger technology (DLT)-based platform that central banks can use to issue and exchange their CBDC.
Central banks around the world have been racing to develop CBDCs as they seek to provide an alternative to cryptocurrencies, but are grappling with the complexities of the technology.
About 100 countries (95% of world GDP) are using or researching CBDC, according to atlantic council.
Earlier this month, the Financial Information System SWIFT sets the blueprint Serving a global central bank digital currency (CBDC) network after 8 months of experimenting with different technologies and currencies.
CBUAE conducted a six-week pilot project with the Hong Kong Monetary Authority, the Bank of Thailand, the People’s Bank of China Digital Currency Research Institute and the Bank for International Settlements.
In the pilot project, commercial banks in four jurisdictions used mBridge to conduct 160 payments and foreign exchange transactions totalling more than AED 80 million (US$ 21.78 million).
Khaled Mohamed Balama, governor of CBUAE, said in a statement that the project is part of CBUAE’s plan to “support the competitiveness, diversity and growth of the UAE’s financial sector in line with future economic trends.”
He added that the central bank will continue to put in place the right governance framework for an interoperable CBDC, with tangible benefits for companies and consumers in the UAE.
(1 USD = 3.6729 UAE Dirham)
By Yusuf Saba
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