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(Gold News) – Central Bank of the United Arab Emirates (CBUAE) Announce On Sunday, it launched a new Financial Infrastructure Transformation (FIT) initiative, which includes plans for the region to issue its own central bank digital currency (CBDC) for cross-border and domestic use.
According to a CBUAE press release, the new FIT initiative aims to “accelerate the digital transformation of the financial services industry as part of a broader strategy aimed at making the CBUAE one of the top central banks in the world.”
The initiative aims to support the UAE’s financial services industry, facilitate digital transactions, and enhance the region’s competitiveness, helping it become a financial and digital hub where companies from around the world can collaborate to bring digital transformation to the financial sector, said CBUAE .
In addition to creating a CBDC, the plan includes nine initiatives. The first phase revolves around digital payment infrastructure and services, including the launch of a domestic card scheme, an instant payment platform, and the issuance of a CBDC for cross-border and domestic use.
“These digital payment initiatives will advance financial inclusion, facilitate payment innovation, security and efficiency, and enable a cashless society,” the announcement said.
To help the program run smoothly, CBUAE plans to strengthen its digital leadership by adopting advanced regulatory technology and data management solutions, which will enable it to implement robust regulatory processes and ensure financial stability.
The CBUAE said that the second phase involves the development and implementation of various digital infrastructures, “including the establishment of a financial cloud, eKYC and an open financial platform”. “These digital infrastructures will improve regulatory compliance, reduce operating costs, enhance innovation and customer experience, and most importantly, strengthen their security and operational resilience.”
The FIT initiative is part of the country’s ‘We UAE 2031’ vision and national digital economy strategy, which plans to fully integrate into the UAE’s financial ecosystem by 2026. The program will help the CBUAE in its mission to “enhance monetary and financial stability and consumer protection through robust financial infrastructure and the adoption of digital technologies.”
HE Khaled Mohamed Balama, Governor of CBUAE, said: “The FIT program embodies the direction and aspirations of our wise leadership for the digitization of the economy and the development of the financial sector.” “We are proud to establish an infrastructure to support a thriving UAE financial ecosystem and its future growth.”
Over time, the CBUAE will provide more details on planning and implementing other initiatives included in the update.
Crypto-related activity in the Middle East has been on the rise lately.Last week, the Virtual Assets Regulatory Authority (VARA) of the Emirate of Dubai released its Comprehensive rules governing the crypto industrywhich includes a proposal to establish a licensing regime for cryptocurrency companies and ban issuance and activity related to anonymity-enhancing cryptocurrencies, also known as privacy coins.
The regulation establishes a comprehensive virtual asset framework based on the principles of economic sustainability and cross-border financial security. According to the regulations, all cryptocurrency companies wishing to operate in Dubai must first obtain authorization and relevant licenses.
Last year, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, statement The city hopes to become one of the top 10 cities in the global metaverse economy by creating 40,000 virtual jobs and adding $4 billion to the city’s economy over five years.
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