UAE to launch digital currency for domestic, cross border payments

The Central Bank of the UAE (CBUAE) will roll out digital currency for domestic and cross border payments.

The move is part of the central bank’s newly launched Financial Infrastructure Transformation Programme (FIT programme), which aims to accelerate the digital transformation in the financial services sector.

The programme consists of nine key initiatives, with the first stage involving the launch of digital payment infrastructures and services such as a Card Domestic Scheme, an Instant Payments Platform, and the issuance of Central Bank Digital Currency for cross-border and domestic uses.

UAE Central Bank moves

These initiatives aim to promote payment innovation, security, and efficiency, and ultimately drive the Emirates towards a cashless society.

The FIT programme aligns with the country’s “We the UAE 2031” vision and National Digital Economy Strategy, with a full integration set for 2026.

The central bank hopes to establish the Emirates as a financial and digital payment hub, as well as a centre of excellence for innovation and digital transformation.

The programme also aims to strengthen the cental bank’s digital leadership by adopting advanced supervisory technologies and data management solutions to ensure financial stability and enhance regulatory compliance.

Central bank governor Khaled Mohamed Balama also expressed his pride in building an infrastructure that will support a thriving UAE financial ecosystem and its future growth.

“The FIT Programme embodies the directions and aspirations of our wise leadership towards digitising the economy and developing the financial sector. We are proud to be building an infrastructure that will support a thriving UAE financial ecosystem and its future growth.

He added that the CBUAE will work with partners to achieve the programme’s goals, accelerate the adoption of digital services in the financial sector, and attract the best talent.

More information and updates on the FIT Programme’s pillars will be announced in due course.

Source: UAE to launch digital currency for domestic, cross border payments – Arabian Business