The Central Bank of the United Arab Emirates (CBUAE) is close to launching its own digital currency (CBDC), known as a digital dirham, to be used for domestic and cross-border payments.
According to the announcement on March 23, the UAE Central Bank signed an agreement with Abu Dhabi-based company G42 Cloud and digital finance service provider R3 to be the infrastructure and technology providers needed to implement the central bank's digital currency strategy.
In addition to addressing the challenges and obstacles that stand in the way of domestic and cross-border payments, the central bank says the new digital currency will also help boost financial inclusion in the UAE, as the country aspires to become a cashless society.
