CBDCs have won over the United Arab Emirates and are currently developing a program to leverage their own central bank digital currency (CBDC). Ultimately, these digital assets are expected to drive innovation and improve the cross-border payments system.
It is a part of a program to enable the UAE to become a financial hub dedicated to innovation and digital transformation.
The announcement marks a significant step forward in the adoption of digital currency globally. Therefore, it shows that the Gulf countries are at the forefront of financial technology.
The UAE CBDC will be based on blockchain technology and will be designed to be used by both individuals and businesses. It will allow users to transfer money quickly and securely, as well as store and spend funds online.
Dubbed FIT, the UAE’s financial infrastructure transformation program also includes eight other initiatives such as a KYC platform to facilitate customer onboarding, a collaborative solution for fintechs and a sovereign financial cloud system.
The FIT program embodies the directions and aspirations of our wise leadership to digitize the economy and develop the financial sector. We are proud to build an infrastructure that will support the UAE’s thriving financial ecosystem,” said IL. Khaled Mohamed Balama, the bank’s governor.