UAE's Central Bank Launches Financial Infrastructure Transformation Program
Date
2/13/2023 3:24:55 AM
(MENAFN) The Central bank of the United Arab Emirates (UAE) has recently announced a new programme to advance digital transformation within the country's financial services sector. Known as the Financial Infrastructure Transformation Programme, it is a comprehensive initiative aimed at bolstering the growth of the UAE's financial ecosystem.
The programme will include several new initiatives such as open finance, a domestic card scheme, an instant payments platform, financial cloud, and supervisory technology. However, the most significant initiative under this new programme is the launch of a Central Bank Digital Currency (CBDC).
The new digital currency will be used for both domestic usage and cross-border payments. It will address the problems of inefficiencies associated with cross-border payments and drive innovation for domestic payments, the regulator said. This CBDC will undoubtedly transform the UAE's financial services sector, making payments and transactions more seamless, secure, and efficient.
Governor of the Central Bank, Khaled Balama, expressed his pride in the implementation of the FIT programme, noting that it embodies the directions and aspirations of the UAE's wise leadership towards digitising the economy and developing the financial sector. Balama added that this infrastructure will enable the growth of a thriving UAE financial ecosystem, paving the way for future economic expansion.
The move towards digital currencies and other fintech initiatives has been on the rise in the UAE in recent years, with various firms and institutions seeking to make use of emerging technologies to improve the country's financial sector. The FIT programme is the latest in a series of significant steps taken by the UAE to establish itself as a global leader in digital innovation.
In addition, the announcement of this new programme is a clear indication that the UAE is not only embracing new and innovative technologies but is also keen on ensuring that it takes a leading role in the digital transformation of the financial services sector in the Middle East and beyond. It is expected that the FIT programme will provide a boost to the UAE's fintech industry, attract new investors, and encourage further growth and development in the sector.
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