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According to bank officials, R3 and G42 Cloud will provide the technology and infrastructure needed for the first phase, and Clifford Chance will provide significant legal oversight of the strategy.
The strategy establishes a framework for the application of CBDC in various domestic and cross-border use cases in the region. The UAE has launched nine CBDC-related initiatives as part of the CBUAE’s Financial Infrastructure Transformation (FIT) programme.
The initiative aims to explore ways to accelerate the digital transformation of the UAE’s financial sector.
David E. Rutter, CEO of R3, commented: “This is another milestone moment in bringing a CBDC closer to production and distribution. A CBDC could strengthen our financial market infrastructure in a number of ways, including more efficient cross-border payments, more Faster settlement times and streamlined multi-party processes. CBUAE takes a major step forward in realizing these benefits
“We are honored and excited that R3 has been selected to design and build the CBUAE’s CBDC ecosystem, an innovative move towards building a more open, trusted and durable digital economy. We look forward to supporting the CBUAE on the next stage of its CBDC journey ,” Rutter added.
The Future of Digital Currencies and Electronic Payments
Countries around the world are taking incremental steps to roll out their CBDCs over the next decade.according to Atlantic CouncilEleven countries have launched CBDCs, while 114 (approximately 95% of global GDP) are considering doing so.
in a Interviewed by RBI in MarchJack Fletcher, R3 CBDC government relations manager, said digital payments were the driving force behind CBDC solutions, a process fueled by Covid and the growing success of e-commerce.
“People are using cash less and less – it’s a consumer choice. We could literally stand in line at ATMs and buy everything with cash. But we’re not doing that,” Fletcher explained.
In the case of the UAE, the launch of the digital currency will address barriers to cross-border payments, enhance financial inclusion and strengthen the UAE’s payments infrastructure.
R3’s Corda — a distributed application platform — is designed to work in a highly regulated environment, potentially serving as a launchpad for the issuance and distribution of its digital currency.
G42 Cloud is an artificial intelligence and cloud computing company established in Abu Dhabi, United Arab Emirates. Its CEO, Talal Al Kaissi, welcomed the partnership with the Central Bank of the UAE.
“We are delighted to be supporting the CBUAE (Central Bank of the UAE) in the development of its digital dirham,” said Al Kaissi. “This collaboration represents a major milestone in the digitization of the UAE’s monetary and payments framework and ensures the country remains at the forefront of innovation in financial services.”
“As a company established in the UAE, we have witnessed first-hand the country’s rapidly developing status as a global fintech hub and are excited to partner with the CBUAE to lead its digital transformation. We look forward to working with the central bank and R3 to provide A cutting-edge CBDC infrastructure with standards of efficiency, security and innovation,” he concluded.
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