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Al Etihad
31-03-2025
- Business
- Al Etihad
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 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 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 added that it would also support new digital services and lower costs for accessing global 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 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 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 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 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 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 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 Coin is fully backed by Dirham reserves and must comply with stringent regulatory 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.
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.
Express Tribune
28-03-2025
- Business
- Express Tribune
UAE launches new Dirham symbol reflecting national identity
Listen to article The UAE has introduced a new symbol for its national currency, the Dirham, which was unveiled by the Central Bank of the UAE (CBUAE) on Thursday. The new design will be used for both physical and digital forms of the Dirham. The symbol draws inspiration from the UAE's flag and embodies the nation's strength and unity. It features two horizontal lines representing the stability of the Dirham, while the flag's elements highlight the power and unity of the country. In its digital form, the Dirham symbol is encircled by a ring, symbolising security and continuity, while echoing the shape of a digital token. This design reflects the UAE's commitment to financial innovation. Incorporating the colours of the UAE flag—green, white, red, and black—the symbol's structure forms the letter 'D' for Dirham, further integrating the flag's lines. The design's curves are inspired by traditional Arabic calligraphy, giving it an elegant and strong presence. The unveiling of the new symbol is part of the UAE's broader efforts to strengthen the Dirham's relevance on the international stage. Recently, the UAE became the first Arab nation to join the FX Global Code, further cementing its position in global finance. Looking ahead, the Central Bank plans to launch the "Digital Dirham" by 2025. This digital currency, based on blockchain technology, aims to enhance transaction security, improve speed, and reduce costs for both individuals and businesses.
Yemen Online
28-03-2025
- Business
- Yemen Online
UAE unveils new dirham symbol and digital currency
The Central Bank of the UAE on Thursday introduced a new symbol for the nation's currency, both in its physical and digital forms, marking a significant step in reinforcing the UAE's status as a leading global financial center. According to the Emirates News Agency or WAM, the newly unveiled dirham symbol draws inspiration from the English letter 'D' and features two horizontal lines that represent financial stability. The design is also a nod to the UAE flag, symbolizing national pride and resilience. This symbol will serve as a global representation of the dirham, promoting the UAE's currency across international markets. The launch of the symbol coincides with the UAE's adoption of the FX Global Code, which positions the CBUAE as the first central bank in the Arab region to join this important framework. The FX Global Code is renowned for promoting best practices and ethical standards within the foreign exchange market, and this step further enhances the UAE's commitment to integrity and transparency in financial dealings. Alongside the physical dirham symbol, the CBUAE is advancing the issuance and circulation of the digital dirham, a core initiative of the Financial Infrastructure Transformation Program launched in 2023. The digital dirham will feature a circular design, incorporating the UAE flag's colors, which reinforces the nation's sense of pride and modernity in the evolving financial landscape. Khaled Mohamed Balama, governor of the CBUAE, expressed his enthusiasm for these transformative steps: 'We are proud to unveil today the new symbol for the UAE's national currency and the design of the digital dirham wallet,' he stated. 'The digital dirham, built on blockchain technology, is expected to enhance financial stability, improve inclusion, increase resilience, and help combat financial crime.' He further emphasized that the digital dirham is set to drive innovation in the financial sector by enabling the creation of new digital products and services, while lowering costs and expanding access to international markets. The digital dirham will be made available through licensed financial institutions, including banks, exchange houses, fintech firms, and other financial services providers. It will be legally recognized as a universal payment method, alongside physical currency, creating a seamless experience for both digital and traditional transactions. Key features of the digital dirham include: Tokenization: This innovative process will enhance financial inclusion by allowing fractionalized access to digital assets, thereby improving liquidity. Smart contracts: The digital dirham will facilitate the use of smart contracts, automating the execution of complex transactions, including multi-party agreements and conditional obligations, with instant settlement. To support the digital currency, the CBUAE has developed a robust and secure platform for its issuance and circulation. This platform includes a user-friendly digital dirham wallet, designed to handle a wide range of financial transactions, including retail and wholesale payments, cross-border transfers, withdrawals, and top-ups. It also ensures ease of access and a convenient user experience, adhering to industry best practices. As the UAE continues to lead in the digital economy, the digital dirham platform is designed to adapt to emerging financial needs, facilitating innovative solutions and reinforcing the country's position as a global leader in digital payments.
TAG 91.1
27-03-2025
- Business
- TAG 91.1
New symbol revealed for UAE Dirham
The Central Bank of the UAE (CBUAE) has unveiled the new symbol for the country's national currency, representing both its physical and digital forms. The new symbol, inspired by the English name of the Dirham, features two horizontal lines symbolizing the stability of the currency and is inspired by the UAE flag to reflect financial stability. For its digital counterpart, a circle surrounds the symbol, using the UAE flag's colours to emphasise national pride and identity. This announcement highlights the UAE's global ambitions, demonstrating the Dirham's expanding international presence and the country's commitment to innovation in its financial system. In related news, the CBUAE has also joined the FX Global Code, becoming the first central bank in the Arab region to do so. This move supports the UAE Dirham's goal of becoming a key international currency, while reinforcing best practices and ethical standards in currency exchange. The 'Digital Dirham', a secure and efficient digital version of the national currency, is set to launch in late 2025 for the retail sector. The digital currency, which leverages blockchain technology, promises lower transaction costs, enhanced data security, and efficient risk management. 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. Key features of the Digital Dirham include tokenization, promoting financial inclusion and greater liquidity, and the use of smart contracts to facilitate automatic, real-time transactions, even for complex, multi-party deals. Integrated Platform and Digital Wallet The CBUAE has developed an integrated and secure platform for the issuance, circulation and use of the Digital Dirham, including a wallet. The Digital Dirham 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. The platform can also easily incorporate innovative financial solutions tailored to emerging use cases driven by the rapid growth of the digital economy in the UAE.
