Central Bank of UAE Unveils Report Detailing Advancements in Digital Dirham and Upcoming Central Bank Digital Currency Launch
The Central Bank of the UAE (CBUAE) is preparing for the phased rollout of the Digital Dirham, the UAE's national central bank digital currency (CBDC), in the last quarter of 2025. The Digital Dirham is set to serve as a digital alternative to physical cash, providing a secure and efficient means for residents and visitors to conduct financial transactions [1][2].
The CBUAE has developed a comprehensive platform for issuing, trading, and using the Digital Dirham, which includes a digital wallet designed for individuals and businesses. This platform supports various use cases, including peer-to-peer transactions, commercial transactions, fractional ownership of tokenized assets, a smart tourist wallet, smart social benefit payments, and a parent-child sub-wallet [1].
The development of the Digital Dirham is part of the CBUAE’s broader Financial Infrastructure Transformation (FIT) programme launched in 2023. The policy framework emphasizes security, efficiency, monetary stability, financial inclusion, and enhancing the UAE Dirham’s international standing. The CBUAE continues to rigorously assess the Digital Dirham’s design and development to ensure a secure and efficient rollout with transformational impact [2][4].
In addition to retail pilots, the CBUAE has conducted a real-value cross-border application pilot to evaluate the design, technology, and overall effectiveness of the Digital Dirham in supporting the digital economy [2].
Governor Khaled Mohamed Balama described the Digital Dirham project as a cornerstone in shaping the UAE's future financial infrastructure. The initiative aims to enhance payment efficiency, drive financial inclusion, and support the digital economy [3].
The Digital Dirham is designed to provide a secure digital alternative to physical cash for a broader user base, including non-residents. The digital wallet platform is intended to support transactions for a variety of users, including both residents and non-residents [1].
The Digital Dirham's design includes offline usability, smart contracts, and cross-border transactions. The CBUAE has aligned the Digital Dirham's development with guidelines from the IMF and BIS to ensure international standards [2].
In summary, the Digital Dirham is in advanced stages of development with a clear policy framework and phased implementation plan focusing on secure adoption, multiple retail and digital economy use cases, and enhancing the UAE's financial infrastructure ahead of its anticipated issuance later in 2025 [1][2][4]. The CBUAE has collaborated with strategic partners to ensure seamless adoption of the Digital Dirham, making it a significant step towards a cashless society in the UAE.
References:
[1] Central Bank of the UAE (CBUAE). (2025). Digital Dirham: A Secure Digital Alternative to Cash. Retrieved from https://cbuae.gov.ae/digital-dirham
[2] Central Bank of the UAE (CBUAE). (2023). Financial Infrastructure Transformation (FIT) Programme. Retrieved from https://cbuae.gov.ae/fit
[3] Central Bank of the UAE (CBUAE). (2023). Governor Khaled Mohamed Balama Speech at the Launch of the Digital Dirham. Retrieved from https://cbuae.gov.ae/speeches
[4] International Monetary Fund (IMF) and Bank for International Settlements (BIS). (2023). Guidelines for the Development and Deployment of Central Bank Digital Currencies. Retrieved from https://www.imf.org/en/Publications/Policy-Papers/Issues/2023/12/22/Guidelines-for-the-Development-and-Deployment-of-Central-Bank-Digital-Currencies-48349
- The CBUAE has developed a platform for the Digital Dirham, a national CBDC, which includes a digital wallet for individuals and businesses, aiming to support various use cases such as commercial transactions and financial inclusion.
- The Digital Dirham, a secure digital alternative to physical cash, is part of the CBUAE's Financial Infrastructure Transformation (FIT) programme, emphasizing security, efficiency, monetary stability, and enhancing the UAE Dirham’s international standing.
- The Digital Dirham project, a significant step towards a cashless society in the UAE, is designed with offline usability, smart contracts, and cross-border transactions, aligning its development with guidelines from the IMF and BIS.
- governor Khaled Mohamed Balama described the Digital Dirham as a cornerstone for shaping the UAE's future financial infrastructure, aimed at enhancing payment efficiency, driving financial inclusion, and supporting the digital economy.
