The UAE has officially completed its first government financial transaction using the Digital Dirham, a landmark achievement executed by the Ministry of Finan
e and the Dubai Department of Finance in collaboration with the Central Bank of the UAE (CBUAE).
This transaction represents a significant step forward in the pilot phase of the Digital Dirham project, a core component of the CBUAE’s broader Financial Infrastructure Transformation (FIT) Programme. The initiative is designed to accelerate the adoption of digital payments and further cement the UAE’s standing as a leading global financial center.
A Strategic Pillar for a Digital Economy
Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the CBUAE, described the Digital Dirham as a “strategic pillar in the UAE’s pursuit of establishing an integrated digital economy.”
He highlighted that the successful transaction between the Federal and Dubai Governments demonstrates “the high level of integration across national financial systems and the advanced technical infrastructure supporting sustainable financial growth and macroeconomic stability.”
The mBridge Platform in Action
The settlement was conducted using the mBridge platform for multiple central bank digital currencies (CBDCs), which was developed by the CBUAE to enable secure transactions for government entities.
Fully integrated with the Digital Dirham, the platform establishes a unified channel for issuing, receiving, and settling government payments directly, eliminating the need for intermediaries. This process is set to significantly improve efficiency, enhance transparency, and reduce operational costs for government financial operations.
About The Digital Dirham Initiative
The Digital Dirham is a central bank digital currency (CBDC) project led by the Central Bank of the UAE. It is a key initiative under the CBUAE’s Financial Infrastructure Transformation (FIT) Programme, which aims to modernize the country’s financial systems. The project supports the UAE’s transition towards a fully integrated digital economy by providing a secure and efficient state-backed digital currency for government and business sector transactions.
Source: Fintech News AE
