The initiative positions the UAE among the growing number of nations developing digital versions of their national currencies.
According to the Central Bank of the UAE (CBUAE), the Digital Dirham will be available through authorised financial institutions such as banks, exchange houses, and fintech firms. The digital currency is set to function alongside traditional cash and will be accepted across all payment channels. Its design incorporates tokenisation, smart contracts, and enhanced security measures to facilitate instant settlements and complex multi-party transactions.
In preparation for the rollout, the CBUAE has established an integrated Digital Dirham platform and wallet system, supporting retail, wholesale, and cross-border transactions.
The upcoming launch follows a recent rebranding of the dirham symbol, which now serves as its international identifier. The new symbol was introduced as part of wider efforts to reinforce the UAE’s position as a financial hub. Officials from the central bank noted that this move aligns with the strategic directives of the country’s leadership and aims to enhance the UAE's financial infrastructure.
The Digital Dirham is being developed under the framework of Federal Decree-Law No. (54) of 2023, which amends provisions of an earlier financial regulation law. This legislative backing ensures that the digital currency will be recognised as legal tender across all payment outlets in parallel with physical currency.
The rebranding and digital currency initiatives come as the CBUAE joins the FX Global Code, becoming the first central bank in the Arab region to do so. This step is intended to support the UAE Dirham’s position in international financial markets, improve transparency in currency exchange practices, and uphold professional standards within the sector.
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