UAE Launches CBDC Project to Accelerate Digital Transformation
The Central Bank of the United Arab Emirates (CBUAE) has recently launched its Financial Infrastructure Transformation (FIT) initiative. It aims to accelerate digital transformation in the financial services industry. The FIT initiative aims to foster an environment that is conducive to innovation and digital transactions. It could improve the country’s chances of becoming a digital and financial payment centre. As part of the FIT initiative, the CBUAE is working on a Central Bank Digital Currency (CBDC) project. It can be seen as a “critical milestone” in the evolution of the country’s currency. This news has been uncovered by Watcherguru.
CBUAE Launches CBDC Project to Boost Financial Inclusion and Digitization
The CBDC project will involve a total of nine different projects, with the introduction of a CBDC being one of them. The use of virtual currency will help to overcome the difficulties associated with local and international financial transactions. It will also assist in improving financial inclusion and the country’s transition to a cashless society. The Governor of the CBUAE, Khaled Mohamed Balama, stated that the implementation of the CBDC plan is a significant milestone in the development of money and payment systems across the country.
CBDC is one of the efforts that will further establish and cement the UAE as a significant international financial hub. It is one of the projects that the CBUAE runs under the FIT program. The implementation of the CBDC plan is a significant milestone in the development of money and payment systems across the country.
CBUAE to Develop Proof-of-Concept for Bilateral CBDC Connections with India
In addition to this, he mentioned that CBDC will speed up the journey toward digitization and boost financial inclusion. They are quite excited about the prospect of investigating the prospects that CBDC will present to the economy and society as a whole.
According to recent articles published in Gulf News & Arabian Business, the initial stage of the approach has three primary pillars as its foundation. The first step is the soft launch of mBridge. It will make it easier to send remittances of real-value CBDC across international borders for international trade.
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The development of a proof-of-concept for bilateral CBDC connections with India would be the second primary area of concentration. Last but not least, the plan will accommodate the proof-of-concept development for the domestic issue of CBDCs. It will include retail as well as wholesale applications. It is anticipated that the first phase will be completed in the range of the next twelve to fifteen months.
