On Thursday, the Central Bank of the United Arab Emirates (CBUAE) announced the launch of its Central Bank Digital Currency (CBDC) Strategy, which is one of the nine initiatives of the CBUAE’s Financial Infrastructure Transformation (FIT) Programme. To facilitate this strategy, CBUAE has partnered with infrastructure and technology providers, namely G42 Cloud and R3 respectively.
CBDC is a digital form of money that is risk-free, issued, and guaranteed by the central bank. It is a secure, cost-effective, and efficient mode of payment and a store of value. Through this digital transformation, CBDC will address the challenges of domestic and cross-border payments, enhance financial inclusion and move towards a cashless society in the UAE.