In a strategic move to guide firms through the expanding digital assets sector, the Institute of Chartered Accountants in England and Wales (ICAEW) has joined forces with the UAE Banks Federation (UBF). ICAEW and the UAE Banks Federation align with the UAE’s advanced pilot program for Central Bank Digital Currencies (CBDCs) and drive the digital assets market, which will exceed $80 billion by 2024.
CBDCs are digital versions of a country’s official currency, issued and regulated by the Central Bank of the UAE. These currencies are intended to complement traditional physical money, providing a secure and efficient means for digital transactions. The UAE is among 36 nations globally currently testing CBDCs.
As part of their partnership, ICAEW and UBF organized a panel discussion to delve into the UAE’s evolving digital currency landscape. The event aimed to equip industry professionals with vital insights and best practices to navigate this burgeoning sector.
The discussion highlighted the inevitability of complete financial digitization and acknowledged the UAE’s leadership in AI adoption. Panelists discussed how CBDCs could revolutionize banking by offering stability and security backed by central banks. However, they also warned of the challenges associated with the digital transition. Increased digitization and AI adoption bring heightened risks of cybercrime, making robust cybersecurity measures essential.
The panel stressed the need for organizations to continuously enhance their cybersecurity strategies to counteract. The evolving threats posed by malicious actors seeking to exploit vulnerabilities and access sensitive financial information.