The Central Bank of the UAE sets out CBDC plan

The strategy, which is part of the CBUAE’s digital transformation programme, sets out a roadmap for applying a CBDC across a range of domestic and cross-border use-cases in the region

The Central Bank of the UAE (CBUAE) is pressing ahead with its plans for a central bank digital currency. 

The central bank just launched its CBDC implementation strategy in collaboration with R3 and G42 Cloud, which will provide the technology and infrastructure, respectively 

The strategy, which is part of the CBUAE’s digital transformation programme, sets out a roadmap for applying a CBDC across a range of domestic and cross-border use-cases in the region. 

The first phase includes initiating real-value cross-border CBDC transactions for international trade settlement, proof-of-concept work for bilateral bridges with India, and proof-of-concept work for domestic issuance covering wholesale and retail usage. 

The implementation aims to address the pain points of cross-border payments, enhance financial inclusion and strengthen the UAE’s payments infrastructure.  

R3’s technology will enable the CBUAE to prepare the UAE for the potential tokenisation of financial and non-financial activities, in addition to the digitisation of other financial services. 

G42 Cloud’s infrastructure will play a “critical role in the successful deployment and adoption of the CBDC system” for the UAE’s digital economy. 

David E Rutter, chief executive officer at R3, commented: “This is another landmark moment in bringing CBDCs even closer to production and issuance.  

“CBDCs can strengthen our financial market infrastructure in several ways, including more efficient cross-border payments, faster settlement time periods and the streamlining of multi-party processes.” 

Talal Al Kaissi, chief executive officer at G42 Cloud, said: “This collaboration represents an important milestone in the digitalisation of the UAE’s monetary and payments framework and ensuring that the country remains at the forefront of financial services innovation.  

“As a company founded in the UAE, we have seen first-hand the country’s rapidly advancing status as a global fintech hub and are excited to be working with the CBUAE in leading its digital transformation.”  

Image: Canva  

Josh Poyser Josh Poyser is an editor at FinTech Intel. He has written about fintech for several years and appeared at FinTech Connect 2023 on the 'Unlocking Success: The Art of Fintech PR' panel.