UAE Central Bank Unveils Plan to Launch CBDC
The Central Bank of the United Arab Emirates (CBUAE) has put forward a proposal to introduce a central bank digital currency (CBDC) as part of its new financial infrastructure transformation (FIT) program.
The program, which was launched recently, is aimed at supporting the local financial services sector through a range of initiatives. The program’s first stage will focus on the issuance of the CBDC for both cross-border and domestic use.
According to the CBUAE, this will help resolve cross-border payment problems and promote innovation for domestic payments.
In addition to the CBDC, the government has plans to launch a unified card payment platform to boost e-commerce and an instant payment platform to support the transition to a cashless society.
Further stages of the FIT program include the creation of a digital assets innovation hub and an e-Know Your Customer platform to prevent illegal activities in the digital space.
It’s worth noting that the FIT program follows the recent release of guidelines on virtual asset activities by Dubai’s virtual asset regulatory authority, which includes a ban on “anonymity-enhanced cryptocurrencies.”
In the past, the Crown Prince of Dubai, Sheikh Hamdan bin Mohammed, expressed the city’s goal to become one of the top 10 cities in the metaverse economy, with the aim of creating 40,000 virtual jobs and adding $4 billion to the city’s economy over a five-year period.