Latest news with #DigitalDirham
Khaleej Times
3 days ago
- Business
- Khaleej Times
Digital Dirham revolution: UAE's leap in global digital finance
The Digital Dirham represents a significant step towards modernising the UAE's financial ecosystem, promoting innovation, and positioning the country as a leading player in global digital finance, experts say. Top executives, experts, analysts and economists said the Digital Dirham will empower the Central Bank of the UAE (CBUAE) with greater monetary policy control and improved tracking of illicit activities, enhancing financial stability. They are of the view that the project aligns with the UAE's Digital Economy Strategy, aiming to double the digital economy's non-oil GDP contribution to 20 per cent by 2031. 'The Digital Dirham, the UAE's Central Bank Digital Currency (CBDC), set for retail launch in fourth quarter of 2025, is poised to transform the UAE economy. Built on blockchain, it aims to enhance financial inclusion, streamline payments, and support a cashless society,' according to the experts. They said fintech innovation will thrive, fostering new financial products and services. The Digital Dirham positions the UAE as a global fintech leader, driving efficiency, inclusion, and economic diversification. Currently, all the major global currencies — US dollar, euro, yen, rupee, yuan and rouble — have their symbols, reflecting their countries' strength and pride. 'The Central Bank of the UAE became the first central bank in the Arab region to introduce it. By reducing transaction costs and enabling real-time settlements, it will benefit retail consumers with faster, cheaper, and secure payments. For businesses, particularly in trade finance, it will simplify cross-border transactions, crucial given the UAE's expatriate-heavy population and economy.' A Significant Move Governor of the CBUAE Khaled Mohamed Balama described the new currency symbol and announcement of the design of CBDC wallet as reflecting the significant advancements in the implementation of the Digital Dirham programme and a leap towards realising the central bank's vision. '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. It will further enable the development of innovative digital products, services, and new business models, while reducing cost and increasing access to international markets.' Vijay Valecha, Chief Investment Officer, Century Financial, said the CBUAE is slated to launch its own Central Bank Digital Currency this year, called the Digital Dirham. This marks a significant leap towards financial innovation and digitisation. 'The digital currency is being developed in partnership with two prominent technology firms, namely, G42 Cloud and R3, and will likely be released in the fourth quarter of 2025,' Valecha told Khaleej Times. The CBUAE also developed a unique symbol for the UAE dirham in physical and digital forms in March 2025. Interestingly, the Digital Dirham is characterised by a large, encircled D with two horizontal lines passing through its center. These lines reflect the stability and resilience of the dirham. Inspiration was also drawn from the UAE flag, symbolising both financial and monetary stability. Thus, it also features the colours of the UAE flag, reinforcing its national identity. The Digital Dirham will support retail, wholesale, and cross-border payments while leveraging blockchain, smart contracts, and tokenisation to enhance efficiency and transparency. It is backed by a robust legal framework and will be distributed through licensed banks and fintech companies to ensure widespread adoption and accessibility. 'It will also facilitate cost-efficient transactions by reducing the intermediaries involved in cross-border payments and lower settlement times. Seamless integration with global CBDC systems and adequate defences against cybersecurity risks will drive its successful adoption.' Advanced Digital Infrastructure Hassan Fawaz, Chairman and Founder of GivTrade, said the UAE's introduction of new dirham symbols and digital forms represents a step towards modernising its currency system and is part of the UAE's Financial Infrastructure Transformation Programme. 'The new symbols reflect the UAE's global currency aspirations, supported by its strong economic position with record trade levels of $800 billion,' he said. Samer Hasn, senior market analyst at said the new symbols reflect the UAE's commitment to further cement its position as a global financial hub. Economist Dr Abdul Rahim Al Farhan said UAE has become one of the most advanced countries in digital in the Middle East in general and the Gulf countries in particular. 'The UAE is currently on its way to becoming a global centre for digital and blockchain, thanks to its flexible regulatory policies, advanced digital infrastructure, and the huge investments of global companies, which make it a major destination for in cryptocurrencies,' Al Farhan said. Digital Dirham to Benefit Economy Valeecha said the launch of the digital dirham in the UAE brings several important benefits to both the general economy and the financial sector. It is part of the country's broader Financial Infrastructure Transformation Programme, which aims to speed up digital innovation in financial services. For the wider UAE economy, he said the digital dirham could support the shift toward a cashless society. By promoting digital payments, it would reduce the need for physical cash, making transactions faster and more efficient. 'The CBUAE has also created the Digital Dirham wallet, which is a safe and complete system for businesses and individuals to issue, manage, and use the digital currency. This would allow for more secure and private transactions, which builds trust and reduces the risk of fraud or misuse,' he said. In addition, the cost of payments and money transfers will also go down because digital currency can work without as many intermediaries, such as banks or money transfer companies. The digital dirham also supports the development of new financial products and services, encouraging innovation and entrepreneurship in the UAE's growing digital economy. For the financial sector, the digital dirham can be used with smart contracts to automatically execute complex deals or conditions including multi-party or multi-step agreements. Moreover, the digital dirham supports cross-border payments, which can improve international trade and capital flows into the country. It also allows for tokenisation and fractional ownership of assets, which would increase access to liquidity and participation in the financial system. 'Overall, the digital dirham may help make the UAE's financial system safer and more streamlined. It is also expected to support new types of businesses and make it easier to connect with international markets, while lowering costs and giving more people and companies access to financial services,' Valeecha said. Accelerating Digital Currency Project Vijay Valecha, Chief Investment Officer, Century Financial, said the Digital Dirham is poised to significantly enhance the UAE's digital currency efforts, as indicated by the CBUAE. 'In line with the broader Financial Infrastructure Transformation (FIT) programme initiated in 2023, the CBUAE is gradually launching the Digital Dirham. This digital currency, recognised as a universal payment method under Federal Decree-Law No. (54) of 2023 will be usable across all payment platforms and channels in conjunction with physical currency,' he said. The Digital Dirham presents significant benefits and features promoting development and innovation, such as: Tokenisation: The Digital Dirham facilitates the process of tokenisation, thereby enhancing financial inclusion and efficiency while simultaneously expanding access to liquidity through digital assets fractionalisation. Smart contracts: The Digital Dirham utilises smart contracts to automate the execution of complex transactions, ensuring instant settlement. This includes handling multi-stage and multi-party transactions that require specific conditions or obligations. The key objectives of the Digital Dirham are: Enhancing domestic, cross-border payments: The Digital Dirham aims to strengthen domestic and cross-border payment systems' efficiency, security, and cost-effectiveness. Digital dirham is also a part of international collaborations like Project mBridge, which explores the use of CBDCs for efficient and secure cross-border payments. Supporting the digital economy: This initiative aligns with the UAE's extensive digital transformation strategy, which seeks to foster a strong digital economy by integrating innovative financial technologies. Promoting financial inclusion: It seeks to offer accessible financial services to unbanked and underbanked communities, promoting increased economic involvement across all social segments.
The National
28-04-2025
- Business
- The National
Abu Dhabi's IHC, ADQ and FAB to launch dirham-backed stablecoin
Abu Dhabi entities IHC, ADQ and First Abu Dhabi Bank plan to launch a new dirham-backed stablecoin, which will be fully regulated by the UAE Central Bank, aimed at easing payment solutions. The stablecoin will operate on the ADI blockchain and will be issued by FAB, the UAE's largest bank, subject to regulatory approval, a joint statement on Monday said. This digital currency 'will revolutionise the ease of making payments and doing business, both locally and globally', the companies said. It will be used as a 'reliable digital currency' by consumers, businesses and institutions and also support emerging digital use cases such as machine-to-machine and artificial intelligence, they said. 'The launch of the stablecoin marks a pivotal step in our commitment to strengthening the UAE's digital infrastructure ecosystem,' Mohamed Alsuwaidi, managing director and group chief executive of Abu Dhabi wealth fund ADQ, said. 'As we move forward towards an increasingly digital and connected economy, the stablecoin will provide a solution that is secure, efficient and scalable, while creating new opportunities for growth and value creation.' Stablecoins − which are pegged to a fiat currency − tend to be less volatile when compared to cryptocurrencies, such as Bitcoin. They are grounded being tied to a currency, or liquid reserves including government treasuries, or commodities such as precious metals. The UAE Central Bank began implementing its digital currency strategy, Digital Dirham in March 2023. Its regulation on stablecoins last year indicated that it was to establish a clear operational framework for cryptocurrencies when implemented. Abu Dhabi Global Market and Dubai's Virtual Assets Regulatory Authority already have frameworks in place for cryptocurrencies. To bolster the strategy, the central bank last month unveiled a new, digital-oriented dirham symbol. AE Coin, the first regulated digital currency in the UAE, was granted final approval by local authorities in December and was scheduled to be launched 'soon'. Tether, whose USDT is the world's biggest stablecoin, last August also received the go-ahead to develop a stablecoin in the UAE. The new stablecoin launched by IHC, ADQ and FAB is expected to 'have a significant impact on various industries, including finance, commerce, and trade', the companies said. The ADI blockchain, on which it will operate, has been developed in the UAE by the ADI Foundation, which will provide a compliant distribution network for blockchain payments. ADI Foundation has strategic partnerships with governments in over 20 countries. 'This new stablecoin represents a transformative step forward and will revolutionise the way both consumers and businesses engage with trusted blockchain payments in the UAE,' said Hana Al Rostamani, group chief executive of FAB.
Arabian Business
31-03-2025
- Business
- Arabian Business
UAE announces new Dirham symbol
The UAE has officially approved a symbol to represent the Dirham currency unit. The Central Bank of the UAE (CBUAE) has unveiled the new symbol for the UAE's national currency, the 'Dirham'. It means the Dirham now has a symbol like the dollar's $ or the euro €. UAE Dirham symbol The CBUAE announced the new symbol for the UAE's national currency in its physical and digital forms. The new UAE Dirham symbol will look like this The letter was chosen, derived from the English name of the Dirham, to serve as an international symbol representing the nation's currency, incorporating two horizontal lines that embody the stability of the UAE Dirham and inspired by the UAE flag, to enhance financial and monetary stability. The Digital Dirham will look like this: On the other hand, the Digital Dirham symbol features a circle surrounding the physical currency symbol, using the colours of the UAE flag to reflect pride and national identity. The symbol choice serves as evidence of the national currency's global reach and openness to a more prosperous future, and commitment to developing an innovative local financial ecosystem with a global perspective. The CBUAE also announced the progress of the Issuance and Circulation of the Digital Dirham, a key initiative of the Financial Infrastructure Transformation (FIT) Programme launched by the CBUAE in 2023, aiming to bolster the UAE's position as a pioneer in Financial Market Infrastructure (FMI) and a destination for excellence in financial products innovation and digitalisation. The UAE's Digital Dirham is underpinned by Federal Decree-Law No. (54) of 2023 amending certain provisions of Federal Decree-Law No. (14) of 2018 concerning the Central Bank and Regulation of Financial Institutions and Activities. This will ensure the acceptance of the Digital Dirham as a universal payment instrument (legal tender) in all payment outlets and channels alongside physical currency. The unveiling of the new dirham symbol is in conjunction with the CBUAE's recent joining to the FX Global Code, becoming the first central bank in the Arab region to do so, comes as part of the CBUAE's efforts to establish the UAE Dirham as an international currency, along with enhancing the integrity and best practices in the exchange market of the national currency against foreign currencies and promoting ethical practices and sound professional rules for its participants. The CBUAE issues the 'Digital Dirham' as a digital version of the UAE's national currency, characterised by high levels of security and efficiency, contributing to reduced costs of payments through its reliance on blockchain technology, which by its technical design insures effective risk management, data protection/privacy, and atomic transaction completion. Individuals and businesses will be able to obtain the Digital Dirham through licensed financial institutions, such as banks, exchange houses, finance companies and fintech companies, according to the use cases that will be activated. The issuance of the Digital Dirham is expected to take place in the last quarter of the year 2025 for retail sector. The Digital Dirham offers several key advantages and characteristics that drive development and innovation, including: Tokenisation: The Digital Dirham facilitates tokenisation, enhancing financial inclusion and efficiency, and expanding access to liquidity through digital asset fractionalisation Smart Contracts: The Digital Dirham is used with smart contracts to programme the execution of complex transactions automatically, settling them instantly, in addition to multi-stage and multi-party transactions that involve conditions or obligations The CBUAE has developed an integrated and secure platform for the issuance, circulation, and use of the Digital Dirham, including a Digital Dirham wallet. The wallet is designed for ease of use and management by both individuals and businesses, enabling a number of financial transactions, including retail, wholesale, and cross-border payments, money transfers and withdrawals, top-ups, and redemption of the Digital Dirham when needed. This ensures a seamless and convenient user experience, in line with industry best standards and practices. The platform is also characterised by its ability to easily incorporate innovative financial solutions tailored to emerging use cases driven by the rapid growth of the digital economy in the UAE. This contributes to ensuring a flexible and advanced financial system, further solidifying the UAE's competitive edge as a leading financial hub and global digital payments platform. Khaled Mohamed Balama, Governor of the CBUAE, said: 'We are proud to unveil today the new symbol for the UAE's national currency the 'Dirham' in both its physical and digital forms, and the design of the Digital Dirham wallet. This reflects the significant advancements in the implementation of the Digital Dirham programme and a leap towards realising the CBUAE's vision. '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. It will further enable the development of innovative digital products, services, and new business models, while reducing cost and increasing access to international markets.'
Gulf Insider
28-03-2025
- Business
- Gulf Insider
UAE Rebrands The Dirham And Readies Digital Currency Launch
The Dirham — the UAE's official currency which has been in existence since 1973 — now has a new symbol as part of a new digital push. The Central Bank of the UAE (CBUAE) revealed on Thursday the new currency symbol as part of a broader effort to strengthen the UAE's position as a leading global financial hub. The updated symbol draws from the English name 'Dirham,' with two horizontal lines representing the currency's stability, reflecting elements of the UAE flag. For the digital version, the symbol is enclosed in a circle with the national flag's colours: an emblem meant to underscore national pride and the country's forward-looking financial vision. The move coincides with the CBUAE's accession to the FX Global Code, making it the first central bank in the Arab region to join the voluntary code that promotes fair and transparent practices in the foreign exchange market. The new symbol and digital developments reflect efforts to raise the Dirham's international profile, especially as digital finance gains pace. As part of the broader Financial Infrastructure Transformation (FIT) programme launched in 2023, the CBUAE is preparing for the phased issuance of the Digital Dirham. Legally recognised as a universal payment instrument under Federal Decree-Law No. (54) of 2023, the Digital Dirham will be accepted across all payment platforms and channels, alongside physical currency. CBUAE Governor Khaled Mohamed Balama described the initiative as a 'major milestone' for the central bank. 'This marks a major milestone in the implementation of the Digital Dirham programme and aligns with the Central Bank's strategic vision,' he said. 'The Digital Dirham, as a blockchain-based platform with cutting-edge capabilities, will enhance financial stability, inclusion, and resilience, while helping to combat financial crime,' Balama added. 'It will also drive innovation in digital products and services, reduce costs, and expand access to global markets.' Built on blockchain architecture, the Digital Dirham aims to provide atomic transaction completion, improved privacy, and strong risk management. Retail issuance is expected in the last quarter of 2025, with individuals and businesses set to access it via licensed banks, exchange houses, and fintechs. The CBUAE is also rolling out a secure and integrated digital wallet that will support a wide range of use cases, from retail and wholesale payments to cross-border transfers and redemptions. Features such as tokenisation and smart contracts are expected to support more complex and automated financial transactions while enhancing efficiency and inclusion. The UAE's move mirrors a similar initiative in Saudi Arabia, where the Saudi Central Bank (SAMA) unveiled an official symbol for the Saudi Riyal in February 2025. Inspired by Arabic calligraphy, the new Riyal symbol is designed to reinforce the currency's identity and usage in local and international financial contexts. Saudi Arabia has also become a full participant in Project mBridge, a cross-border central bank digital currency (CBDC) pilot involving central banks from China, Hong Kong, Thailand, and the UAE. The project is seen as a key initiative to modernise international trade payments through blockchain-powered CBDCs.
CairoScene
28-03-2025
- Business
- CairoScene
The Dirham Now Has Its Own Official Symbol
The new Dirham symbol draws inspiration from the UAE flag. Mar 28, 2025 A dedicated symbol for the Dirham has officially been unveiled, aligning it with global currencies like the dollar ($), pound (£), and euro (€). The new Dirham symbol—a stylized "D" with two horizontal lines—draws inspiration from the UAE flag and marks a significant step in standardizing the national currency's identity. Announced by the Central Bank of the UAE (CBUAE), this move strengthens financial stability and reinforces the Dirham's global presence. Until now, the currency lacked a unified symbol, with abbreviations like AED, Dhs, and Dh used interchangeably. Beyond physical currency, the UAE is set to launch the Digital Dirham in Q4 2025, integrating blockchain technology for cross-border transactions, remittances, and digital payments—alongside the Digital Dirham Wallet. The UAE joins a growing trend of currency modernization, following Saudi Arabia's recent introduction of a symbol for the Riyal.
