(MENAFN- Khaleej Times)

UAE marked a pivotal milestone on Tuesday as the first government transaction using the Digital Dirham was executed. Issued by the Central Bank of the UAE, the Digital Dirham ushers in a new era of digital money in the country.

The new national milestone reflects the UAE's leadership in future FinTech. The transaction was completed through government payment platform mBridge in under 2 minutes.

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This milestone is part of the pilot phase of the Digital Dirham project, initiated by the Central Bank of the UAE under the Financial Infrastructure Transformation (FIT) Programme and in collaboration with local financial authorities. The project aims to accelerate the adoption of digital payments and reinforce the UAE's position as a global hub for financial innovation.

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Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, announced in a post on X, "Today, Ministry of Finance & Dubai Finance marked a pivotal milestone in the history of government financial transformation in the UAE, as we executed the first government transaction using the Digital Dirham issued by the Central Bank of the UAE, representing the future of the national digital currency in both government and private sector transactions."

"Using the Digital Dirham in government transactions reflects the Ministry of Finance's commitment to accelerating digital transformation in public finance management and enhancing transparency and efficiency in government financial systems. This strategic step reinforces the integration of the national financial ecosystem and aligns with the UAE leadership's vision of building an advanced, innovative, and trustworthy digital national economy," he added.

Digital Dirham transactions aim to enhance operational efficiency and expedite financial settlements between government entities.

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