The Central Bank of the United Arab Emirates has officially signed the formal launch of the country’s Central Bank Digital Currency (CBDC) strategy, which will be known as the Digital Dirham (CBUAE).
The United Arab Emirates Central Bank (CBUAE) has been working on the Digital Dirham for some time, and the launch of the plan represents a significant step forward in the construction of a digital currency for the nation. The United Arab Emirates’ national currency, the dirham, has a digital counterpart called the Digital Dirham, which will be created and supported by the Central Bank of the United Arab Emirates (CBUAE).
The United Arab Emirates Central Bank has assured the public that making local and international transactions using the Digital Dirham will be risk-free and straightforward in the near future. Additional benefits of using digital currency include increased openness, fewer costs associated with transactions, and expanded access to the financial system.
In a statement, H.E. Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates, was quoted as saying, “CBDC is one of the initiatives in the CBUAE’s FIT program, which will further position and solidify the UAE as a leading global financial hub. The launch of our CBDC strategy marks a key step in the evolution of money and payments in the country. CBDC will accelerate our digitalisation journey and promote financial inclusion. We look forward to exploring the opportunities that CBDC will bring to the wider economy and society.”
The Central Bank of the United Arab Emirates (CBUAE) has scheduled the launch of the Digital Dirham to take place in stages. The initial deployment will concentrate on CBDC for use in wholesale transactions by financial institutions, which is estimated to take twelve to fifteen months. In the second stage, a CBDC retail location will be opened and made accessible to customers as well as businesses.
The launch of the Digital Dirham comes at the same time as central banks all over the world are showing a rising interest in CBDCs. China is the originator of the digital yuan, and other countries, including the United States of America and the United Kingdom, are mulling over the possibility of launching their own central bank-issued digital currencies. (CBDC)
The strategy for the Digital Dirham that was developed by the CBUAE has the goals of increasing financial inclusion, reducing the costs of transactions, and boosting the efficiency of the financial system across the UAE. Because of the staggered distribution timetable, the Central Bank of the United Arab Emirates will have the ability to successfully monitor the implementation of the Digital Dirham.
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