The UAE Central Bank (CBUAE) has launched its digital currency implementation strategy, which forms one of the key initiatives in its programme to digitise the country’s finance sector. In February, as part of the announcement of its Financial Infrastructure Transformation (FIT) programme , the CBUAE said a digital currency was one of a list of nine projects, which also includes the country’s first card payment platform, an instant payments system. The CBUAE has named financial services blockchain specialist R3 and UAE-headquartered clod supplier G42 Cloud as infrastructure technology providers, with Clifford Chance providing legal services. A Central Bank Digital Currency (CBDC) is a digital coin issued by a central bank, linked to the country’s fiat currency. As such, it would always retain its value – unlike volatile cryptocurrencies – and would replicate the use of cash. The CBUAE said a CBDC will eventually be applied across a range of domestic and cross-border use-cases in the Middle East region. The first phase is expected to take place over the next 12 to 15 months. According to CBUAE, this will see the initiation of real-value cross-border CBDC transactions for international trade settlement, proof-of-concept work for bilateral CBDC bridges with India, and […]
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