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UAE’s ‘Digital Dirham’ to Disrupt International Trade Settlements

UAE’s ‘Digital Dirham’ to Disrupt International Trade Settlements

The United Arab Emirates' (UAE) central bank has recently introduced a new plan for issuing its digital currency, known as the 'digital dirham.'

This deployment is part of the country’s Financial Infrastructure Transformation (FIT) Program, which consists of nine key initiatives.

Over the next 12 to 15 months, the initial phase of the strategy will be implemented, which comprises three components

  • Soft launch of mBridge, enabling real-value cross-border CBDC transactions for international trade settlements
  • Proof-of-Concept (PoC) for CBDC bridges with India
  • PoC for domestic CBDCs in wholesale and retail.

The introduction of CBDCs in the United States has raised concerns about financial privacy, with Congressman Tom Emmer introducing the CBDC Anti-Surveillance Act to block the Federal Reserve from launching the Digital Dollar Project.

READ MORE: Coinbase and SEC Lock Horns Over Alleged Securities Law Breaches

The digital euro enrollment of the European Central Bank (ECB) is currently prioritizing e-commerce and person-to-person payments.

At the same time, the Bank for International Settlements (BIS) has recently concluded its ‘Icebreaker’ project, which examines the potential benefits and difficulties associated with utilizing CBDCs in international payments.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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