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The UAE has accomplished its first authorities monetary transaction utilizing the Digital Dirham, marking a big milestone within the nation’s drive to construct an built-in and safe digital financial system.
The transaction, executed collectively by the Ministry of Finance and Dubai Finance (DOF) in collaboration with the Central Financial institution of the UAE, represents a key step towards the broader adoption of the nationwide digital foreign money throughout authorities and personal sector operations.
The initiative reaffirms the UAE’s position as a pioneer in next-generation monetary applied sciences.
UAE Digital Dirham transaction
This achievement varieties a part of the pilot section of the Digital Dirham venture, initiated by the Central Financial institution of the UAE beneath the Monetary Infrastructure Transformation (FIT) Programme in coordination with native monetary authorities.
The venture goals to speed up digital funds adoption and strengthen the UAE’s place as a worldwide hub for monetary innovation.
Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court docket, and Chairman of the Central Financial institution of the UAE, mentioned the Digital Dirham represents a strategic pillar within the nation’s imaginative and prescient to construct an built-in digital financial system, consolidating the UAE’s place as a worldwide monetary centre.
He famous that conducting the primary authorities transaction between the Federal Authorities and the Dubai Authorities displays the combination of nationwide monetary programs and the superior technical infrastructure supporting sustainable progress and macroeconomic stability.
Historic transaction
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, mentioned that utilizing the Digital Dirham in authorities transactions highlights the Ministry’s dedication to accelerating digital transformation in public finance administration, whereas enhancing transparency and effectivity in authorities monetary programs.
He emphasised that this step reinforces the combination of the nationwide monetary ecosystem and aligns with the UAE management’s imaginative and prescient of constructing a complicated, modern, and reliable digital nationwide financial system.
Mohammed Hadi Al Husseini, Minister of State for Monetary Affairs, mentioned: “The usage of the Digital Dirham for presidency transactions is a qualitative shift in leveraging monetary expertise, creating a chance to develop authorities and personal funds.
“Conducting the primary authorities transaction utilizing the Digital Dirham in partnership with the Central Financial institution of the UAE serves as a pioneering mannequin of company integration and enhances international confidence within the UAE’s financial system.”
Khaled Mohamed Balama, Governor of the Central Financial institution of the UAE, mentioned: “Launching the pilot section of the Digital Dirham marks a qualitative milestone within the UAE’s digital transformation. It displays the imaginative and prescient of the clever management and the UAE’s dedication to advancing nationwide fee programs, strengthening monetary stability, enhancing the nation’s monetary ecosystem, and consolidating its international management in monetary innovation.”
He mentioned the Central Financial institution stays dedicated to working with companions to develop cutting-edge monetary options that align with international shifts, reinforce nationwide stability, and assist construct a globally aggressive digital financial system.
Integration with mBridge platform
Abdulrahman Saleh Al Saleh, Director Normal of DOF and Vice Chairman of the Central Financial institution of the UAE, mentioned the profitable execution of the primary transaction demonstrates the excessive degree of integration among the many nation’s monetary programs and the superior infrastructure enabling a completely built-in nationwide financial system.
Ahmed Ali Meftah, Government Director of Central Accounts Sector at DOF, mentioned the pilot transaction was carried out by way of the federal government funds platform mBridge to check operational readiness and guarantee seamless integration with the Central Financial institution’s programs.
He famous that the transaction was accomplished in lower than two minutes, underscoring its effectivity and skill to expedite settlements between federal and native authorities entities.
Constructing the inspiration for a digital financial system
The mBridge platform permits authorities entities to conduct settlements securely utilizing central financial institution digital foreign money (CBDC). Built-in with the Digital Dirham initiative, it gives a unified channel for issuing, receiving, and settling funds digitally with out intermediaries.
The platform enhances effectivity, transparency, and cost-effectiveness, supporting the UAE’s digital transformation and consolidating its international management in monetary expertise.
The initiative underlines the UAE’s regular progress towards a completely built-in digital financial system, reinforcing its regional and international management in adopting superior technological options that promote transparency, effectivity, and sustainability throughout all monetary programs.
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