The UAE has successfully executed its first government financial transaction using the Digital Dirham, marking a significant step in the nation’s journey toward a fully digital economy. This achievement follows an earlier cross-border trial in which the UAE transferred AED 50 million to China via the same platform, showcasing the country’s growing capabilities in digital currency applications.
The Ministry of Finance and the Dubai Department of Finance (DOF), in partnership with the Central Bank of the UAE (CBUAE), carried out the transaction. Officials noted that this milestone signals the next stage of integrating the Digital Dirham into the UAE’s financial ecosystem, further strengthening its leadership in financial innovation and advanced digital technologies.
The initiative forms part of the pilot phase of the Digital Dirham project, launched under the CBUAE’s Financial Infrastructure Transformation (FIT) Programme. The programme seeks to accelerate digital payment adoption, enhance financial inclusion, and bolster the UAE’s status as a leading global financial hub through technology-driven advancements.
In January 2024, the UAE completed its inaugural cross-border payment using the Digital Dirham through the mBridge platform, transferring funds directly to China. Conducted in partnership with the People’s Bank of China, the Hong Kong Monetary Authority, and the Bank of Thailand under the Bank for International Settlements Innovation Hub, the pilot demonstrated the potential of central bank digital currencies (CBDCs) for fast, secure, and transparent international settlements.
