UAE locks in end-of-year launch for digital dirham
31 Mar 2025 23:10
ISIDORA CIRIC (ABU DHABI)The UAE's long-anticipated digital currency will officially hit the market in the final quarter of 2025, the Central Bank of the UAE (CBUAE) has announced, setting the stage for a major shift in how residents and businesses make payments.Described by the CBUAE as "a universal payment instrument", the digital dirham will be accepted across all payment outlets and channels, functioning as a legal tender alongside physical cash. It will be issued through licensed financial institutions such as banks, exchange houses, finance companies and fintechs.Powered by blockchain technology, the digital dirham promises faster, cheaper, and more secure transactions for everyday use."It is anticipated that the digital dirham, as a blockchain-based platform with cutting-edge capabilities, shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime," Khaled Mohamed Balama, CBUAE Governor, said in a statement on Thursday.He added that it would also support new digital services and lower costs for accessing global markets.The rollout will be supported by a dedicated platform built by the CBUAE for issuing, circulating and managing the digital dirham. The platform supports smart contracts and tokenisation, allowing for automated, instant execution of complex or conditional transactions, as well as easier access to liquidity.The digital dirham also comes with its own wallet, the CBUAE statement added, designed to be intuitive, flexible and suitable for both personal and business transactions. It will enable users to perform retail and wholesale payments, cross-border transfers, top-ups, cash withdrawals, and convert digital dirhams back to physical AED. According to the Central Bank, the system is flexible enough to support emerging use cases as the digital economy grows.Coupled with the CBUAE's recent adoption of the FX Global Code, this rollout will make the UAE one of the first countries in the region to offer a central bank digital currency (CBDC) to the public - but it's not the only initiative reshaping the dirham's digital future.In parallel with the CBDC push, the Central Bank approved a licensing framework in 2024 to regulate stablecoins - digital tokens pegged to the dirham but issued by private companies.Stablecoins aim to offer the stability of fiat currency without the price swings associated with cryptocurrencies like Bitcoin. This stability is important for everyday payments, where volatility could cause prices to fluctuate unexpectedly, turning a simple purchase like a sandwich into a speculative gamble for both buyers and sellers.Tether, the world's largest stablecoin issuer, was quick to enter the UAE market after the framework's approval, announcing plans for a dirham-backed token in partnership with Phoenix Group and Green Acorn Investments."Tether's latest upcoming stablecoin is a digital representation of the United Arab Emirates dirham, with each token being fully backed by liquid UAE-based reserves," the company said in an announcement statement in August 2024. Tether's CEO, Paolo Ardoino, cited the country's position as a "significant global financial hub" and its favourable regulatory environment as factors that could skyrocket stablecoin adoption and expansion.Another firm, AED Stablecoin, secured in-principle approval later in the year and has since launched AE Coin - the UAE's first officially approved dirham-backed stablecoin.AE Coin is fully backed by Dirham reserves and must comply with stringent regulatory requirements.This includes capital thresholds, asset reserve mandates (AE Coin should maintain a 1:1 reserve in Dirham for each token issued), and redemption guarantees, according to a recent analysis by TLP Advisors, titled "Securing Digital Finance: An Overview of the UAE's Payment Token Services Regulation."While both the digital dirham and dirham-backed stablecoins serve as digital representations of the national currency, there's a key difference in who's behind them. The former is state-issued and carries the legal tender status, while the latter are private initiatives operating under the Central Bank oversight.
Together, they signal a broader shift in the UAE's approach to integrating finance and technology - one that could change the way people interact with the dirham for good.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
2 hours ago
- Khaleej Times
UAE drives global crypto revolution with adoption and innovation
The UAE has reinforced its position as the world's foremost crypto hub in 2025, leading a global surge in digital asset adoption driven by progressive regulations, strategic partnerships, and a tech-savvy population. A recent study by Atmos ranks the UAE as the most crypto-obsessed nation, scoring 98.4 out of 100, with a 25.3% cryptocurrency ownership rate and a phenomenal 210% adoption growth. This meteoric rise, coupled with Bitcoin's blistering rally past $110,000 and a $2.2 trillion market cap, underscores the UAE's pivotal role in reshaping global finance. As the country leverages regulatory clarity, institutional investments, and cutting-edge fintech innovations, it is not only riding the crypto wave but defining its future trajectory. The Atmos study evaluates crypto engagement through four key metrics — ownership rates, adoption growth, per capita search activity, and Bitcoin ATM availability. The UAE's dominance is remarkable despite having just one Bitcoin ATM, compared to the United States' 29,834 or Canada's 3,561. With 186,000 monthly crypto-related searches and a 210% adoption surge, the UAE outpaces Singapore (97.5 score, 24.4% ownership) and the US (85.4 score, 15.5% ownership). This reflects a cultural and economic embrace of digital assets, fuelled by a young, affluent demographic — over 60% of the UAE's 9.8 million residents are under 30 — and a government committed to a blockchain-powered economy. 'Crypto adoption is reshaping financial systems worldwide,' said Nick Cooke, CEO of Atmos, emphasising the UAE's leadership in integrating crypto into daily life. Bitcoin's recent ascent to $108,955.10, with peaks at $109,857, has ignited global optimism, with analysts like Nigel Green of deVere Group revising price targets from $150,000 to $175,000 by August 2025. Green attributes this rally to macro tailwinds, including a cooler US inflation report, easing US-China trade tensions, and a Moody's downgrade of US sovereign debt, which has driven investors toward Bitcoin as a hedge against fiat instability. 'Bitcoin is no longer just a speculative play but a strategic hedge,' Green notes, highlighting its appeal as 'digital gold' amid eroding sovereign credibility. The UAE's high ownership rate aligns with this trend, as investors seek assets immune to dilution or adoption is a cornerstone of the UAE's crypto ecosystem. Ripple's licensing by the Dubai Financial Services Authority (DFSA) to operate within the Dubai International Financial Centre (DIFC) marks a regional first, enabling regulated crypto payment services. Brad Garlinghouse, Ripple's CEO, praises the UAE's regulatory clarity, noting its $400 billion international trade market and 64% of Middle East and Africa finance leaders prioritising faster payments via blockchain. Ripple's RLUSD stablecoin, launched in 2023 with a $130 million market cap, exemplifies the demand for real-time settlement solutions. Similarly, partnership with UAE-based Tawasal integrates crypto services into a superapp, enhancing accessibility. Abu Dhabi's MGX investing $2 billion in Binance further cements the UAE's role as a crypto investment hub, with Emirates NBD's Liv platform introducing crypto services to bridge traditional and decentralised finance. The UAE's regulatory framework, led by Dubai's Virtual Assets Regulatory Authority (VARA) and Abu Dhabi Global Market (ADGM), balances innovation with oversight. VARA's licensing has attracted global players, while ADGM's regulations support blockchain development. 'The UAE's regulatory sandboxes allow fintechs to test AI-driven solutions safely,' says Nadeem Ladki of Bitpanda Technology Solutions. This contrasts with restrictive regimes like China's, positioning the UAE ahead of Singapore and Switzerland, despite their progressive policies. The UAE's $30 billion in crypto investments in 2024, coupled with a 41% increase in crypto app downloads, underscores its business-friendly environment, with free zones like DIFC and ADGM offering tax incentives and low startup costs. Decentralised finance (DeFi) is transforming the UAE's financial landscape, with global DeFi protocols holding over $150 billion in 2024. Platforms like MakerDAO and Compound enable intermediary-free financial services, aligning with the UAE's goal of financial inclusion for the 1.7 billion unbanked globally, per World Bank data. The UAE's mobile-centric DeFi solutions, supported by its advanced tech infrastructure, are poised to lead this shift. The upcoming Digital Dirham, a blockchain-based central bank digital currency (CBDC) set for fourth quarter of 2025, will enhance cross-border payments and combat financial crime, according to Khaled Mohamed Balama, Governor of the Central Bank of the UAE. With 10% of global GDP expected to be tokenised by 2027, the Digital Dirham positions the UAE at the forefront of this transformation. Artificial intelligence (AI) is amplifying the UAE's crypto prowess, with initiatives like DIFC's AI and Web3 incubator fostering innovation. AI enhances fraud detection and compliance, critical for navigating VARA's regulations. Globally, Layer 2 solutions like Optimism and Arbitrum improve blockchain scalability, making crypto viable for daily transactions. The UAE's fintech market, projected to reach $3.56 billion in 2025 and $6.43 billion by 2030, benefits from a 12.56% CAGR, driven by AI and blockchain synergy. Non-fungible tokens (NFTs) and metaverse platforms like OpenSea and Decentraland are also gaining traction, with the UAE's tech-savvy market capitalising on these new digital economies. Bitcoin's global rally, up 8.6% weekly, is mirrored by other cryptocurrencies like Ethereum (37.2%), XRP (19.2%), and Solana (18.6%), per Nick Forster. Ethereum's Pectra upgrade and Coinbase's S&P 500 inclusion signal mainstream adoption, boosting market confidence. In the UAE, 39.1% of residents are projected to use crypto by year-end, driven by user-friendly platforms and regulatory trust. The Bitcoin 2025 conference in Las Vegas, featuring speakers like US Vice-President JD Vance and MicroStrategy's Michael Saylor, will likely amplify global enthusiasm, with potential US policies like a Strategic Bitcoin Reserve further fueling growth. Despite its leadership, the UAE faces challenges. Cybersecurity risks in crypto transactions require ongoing investment, and balancing regulation with innovation remains critical. Globally, regulatory disparities — China's crackdowns versus the EU's MiCA framework — highlight the UAE's advantage in proactive governance. George Naddaf of eToro Mena notes, 'Fintech is redefining how investors make decisions,' with the UAE's education and accessibility initiatives sustaining momentum. Arif Amiri of DIFC emphasises the country's ecosystem, including an independent regulator and efficient judicial system, as a springboard for fintech growth. The UAE's crypto revolution is a blueprint for global economies. Its 210% adoption growth, 25.3% ownership rate, and $30 billion in 2024 investments reflect a nation not just adapting to digital finance but shaping it. As Nick Cooke of Atmos states, 'In the UAE, crypto drives a fully digitised economy.' With Bitcoin's resilience, institutional backing, and innovations like DeFi, CBDCs, and Web3, the UAE is poised to dominate the next phase of the crypto evolution, setting a global standard for a decentralized, inclusive financial future.
Arabian Post
a day ago
- Arabian Post
Murena's /e/OS 3.0 Enhances Privacy and Parental Oversight
Murena has unveiled /e/OS 3.0, the latest iteration of its open-source, privacy-centric mobile operating system. This update introduces a suite of features aimed at bolstering user privacy and providing enhanced parental controls, positioning /e/OS as a compelling alternative for those seeking to minimize reliance on mainstream tech ecosystems. A notable addition is the integration of Murena Find, a search engine powered by Qwant. Operating in a default 'no tracking' mode, it ensures that user search activities remain private, aligning with /e/OS's commitment to data protection. The update also brings a speech-to-text messaging feature, allowing users to dictate messages hands-free. This functionality is particularly beneficial for users engaged in activities where manual typing is impractical. ADVERTISEMENT Addressing concerns about device loss, /e/OS 3.0 introduces a Find My Device feature that operates via SMS. This allows users to locate their devices without requiring an internet connection, enhancing the practicality of device recovery in various scenarios. Parental controls have been significantly refined in this release. Guardians can now set restrictions on app installations and screen time, with applications rated as 'PG' necessitating a security code for installation. This added layer of control aids in managing children's digital interactions more effectively. For users utilizing larger screens, the new Tablet Mode offers an optimized interface, improving navigation and multitasking capabilities. This enhancement ensures that the user experience remains consistent across different device formats. The Advanced Privacy feature has been upgraded to provide weekly reports on app tracking behaviors and an overall Privacy Score. Users can also customize geolocation access on a per-app basis, choosing to share either their actual location or a fabricated one, thereby exercising greater control over their personal data. Murena Vault, an experimental cloud storage solution powered by CryptPad, is introduced in this update. Offering end-to-end encryption, it facilitates secure file storage and real-time collaboration, underscoring Murena's dedication to user data security. Gaël Duval, founder of /e/OS and CEO of Murena, emphasized the company's ethos, stating, 'We believe that technology should serve people, not the other way around. With this new version of /e/OS, we are raising the bar even higher in our powerful proposition for a healthier, more ethical, and user-first digital life.'
Arabian Post
2 days ago
- Arabian Post
Gemini Quietly Advances Toward Public Listing Amid Regulatory Shift
Cryptocurrency exchange Gemini, co-founded by Cameron and Tyler Winklevoss, has confidentially filed for an initial public offering in the United States, signaling a significant step toward entering public markets. The firm is collaborating with investment banks Goldman Sachs and Citigroup on the offering, according to individuals familiar with the matter. While the timeline and final decision remain pending, the confidential nature of the filing allows Gemini to prepare for a potential listing without immediate public disclosure. This move follows the conclusion of a nearly two-year investigation by the U.S. Securities and Exchange Commission into Gemini's operations. In February, Cameron Winklevoss announced that the SEC had closed its inquiry without recommending enforcement action, removing a significant regulatory hurdle. Additionally, Gemini settled a separate lawsuit with the Commodity Futures Trading Commission in January, agreeing to a $5 million penalty over allegations related to its 2017 bid to offer Bitcoin futures contracts. Gemini's decision to pursue an IPO comes amid a broader shift in the U.S. regulatory landscape under the current administration, which has adopted a more crypto-friendly stance. This environment has encouraged several digital asset firms, including Kraken and Circle, to explore public listings. Notably, the Winklevoss twins were among approximately 30 crypto executives who attended a White House summit focused on digital assets, reflecting the administration's engagement with the industry. Founded in 2014, Gemini has positioned itself as a regulated and secure platform for cryptocurrency trading and custody. The exchange operates in multiple global markets, including New York, Singapore, London, and Dublin. In late 2024, Gemini expanded its services to France in anticipation of new EU cryptocurrency regulations. The company has also diversified its offerings, launching products such as the Gemini Dollar stablecoin and acquiring the NFT platform Nifty Gateway in 2019. ADVERTISEMENT Despite its growth, Gemini has faced challenges, particularly related to its Earn program, which allowed customers to lend crypto assets to the now-bankrupt lender Genesis. The program's suspension in November 2022 led to approximately $940 million in customer assets being frozen. However, a rise in crypto prices has since enabled Gemini and Genesis to return over $2 billion worth of crypto to affected customers.
