UAE Central Bank set to launch Digital Dirham in phases
Once launched, Digital Dirham, which is the digital alternative to physical money, will allow the public to use it for a wide range of payments, including online, in-store, commercial and peer-to-peer transactions.
A comprehensive platform has been developed to issue, trade and use the Digital Dirham, including the digital wallet, which enables individuals and businesses to conduct financial transactions, the report added.
It will hold the same value as physical currency but in a secure, blockchain-based form.
In an earlier statement, the CBUAE confirmed that the Digital Dirham will be launched for the retail sector during the last quarter of 2025.
The project began in 2019 and has now completed its first stage.
In January 2024, His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court and Chairman of the Board of the Central Bank of the UAE, authorised the first Digital Dirham transaction abroad using the 'mBridge' platform - a system built with partners in China, Thailand and Hong Kong to make cross-border payments faster and low-cost.
Before the launch, the CBUAE ran real-life trials to test how the Digital Dirham could be used. These included programmable government payments that can only be spent in approved places, tourist wallets with instant VAT refunds and easy currency exchange, fractional ownership of assets like property using tokenisation and parent-child wallets to teach financial responsibility with spending limits.
The Digital Dirham is part of the UAE's long-term plan to modernise its financial system, making payments faster, more secure and easier for everyone to access. It will not earn interest, to keep its focus on spending rather than saving.
The CBUAE will continue working with local and international partners to ensure a coordinated and gradual rollout of the currency across the UAE and beyond.
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