UAE approaches completion of digital currency strategy with 'Digital Dirham' initiative
Date
4/21/2024 4:26:12 AM
(MENAFN) The United Arab Emirates (UAE) is on the brink of finalizing the initial phase of its Central Bank's ambitious strategy for the introduction of the digital currency known as the "Digital Dirham." This groundbreaking initiative aims to revolutionize the country's payment infrastructure by introducing additional channels, bolstering financial inclusion, facilitating local and cross-border payments, and paving the way for a transition towards a cashless society. Moreover, it signifies the UAE's proactive stance in anticipating the future trajectory of digital currencies on a global scale.
According to insights from the Interregional Center for Strategic Analyses based in Abu Dhabi, the "Digital Dirham" strategy, unveiled in March 2023, forms a crucial component of the Central Bank's broader agenda aimed at modernizing its financial infrastructure. As part of the implementation process for the digital currency initiative, strategic partnerships have been forged with key technology players, including G42 Cloud and the digital financial services provider R3 in Abu Dhabi, to serve as infrastructure and technology providers.
This strategic collaboration positions the UAE at the forefront of digital currency adoption, showcasing its rapid progress and advanced capabilities in developing the requisite financial framework for digital currency trading. Notably, the UAE's proactive approach has enabled it to outpace other nations in the region and around the world in terms of issuing a digital currency for its official state currency.
The Interregional Center emphasized the recent successful testing of the "Digital Dirham" in commercial transactions involving both the Kingdom of Saudi Arabia and India. This milestone underscores the effectiveness of the UAE's transformation efforts and underscores its leading position in the region and globally in embracing digital currency innovation. As the UAE prepares to enter this new era of digital finance, it is poised to set new standards and shape the future landscape of digital currencies for years to come.
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