The UAE digital currency is a risk-free form of digital money issued and guaranteed by the central bank.
They will play a key role in the Central Bank’s CBDC implementation, which is one of the nine initiatives of the CBUAE’s Financial Infrastructure Transformation (FIT) Programme.
For the first phase of the CBDC Strategy, the focus will be on three main pillars – soft launch of mBridge, proof-of-concept work for bilateral CBDC bridges with India.
mBridge will facilitate real-value cross-border CBDC transactions for international trade settlement.
The first phase will take place over the next 12 to 15 months.
It is also a secure, cost-effective, and efficient form of payment and a store of value, thus addressing the issue around domestic and cross-border payments.
It will also enhance financial inclusion, and move towards a cashless society, and further strengthen the UAE’s payment infrastructure.