CBDC Plan From UAE

The Central Bank of the United Arab Emirates (CBUAE) plans to launch a central bank digital currency (CBDC) for cross-border and domestic use as part of the first of its newly launched financial infrastructure transformation (FIT) program.

In a recent announcement, the CBUAE introduced the FIT program and highlighted its aim to support the country’s financial services sector. The central bank stressed that the program will promote digital transactions and ensure the competitiveness of the UAE as a financial and digital payments hub.

On the other hand, the first phase of the FIT program includes the launch of a CBDC. According to the central bank, the issuance of the CBDC will respectively address the problems and inefficiency of cross-border payments and help spur innovation for domestic payments. According to CBUAE President Khaled Mohamed Balama, the FIT program will support a thriving UAE financial ecosystem and its future growth.

Alongside the CBDC, the government plans to launch, in the first phase of the program, a unified card payment platform to “facilitate the growth of e-commerce” and an instant payment platform to support financial inclusion and enable a cashless society. In addition, the FIT program consists of nine initiatives, including those to be implemented in the first phase. Initiatives after the first phase include an e-KYC platform and an innovation hub.