The UAE Partners With G42 Cloud and R3 to Launch a National CBDC Strategy

 The UAE Partners With G42 Cloud and R3 to Launch a National CBDC Strategy

The Central Bank of the UAE CBUAE) has commenced the implementation of the CBUAE Central Bank Digital Currency (CBDC) Strategy. The bank launched the program with G42 Cloud and R3 last Saturday. It is one of the nine initiatives of the CBUAE’s Financial Infrastructure Transformation (FIT) Program.

In a recent press release, the CBUAE noted that the official launching of the CBDC enables it to embark on the various phases of the project’s development strategy. According to the bank, over the next 12 to 15 months, it will achieve the soft launch of mBridge to facilitate real value cross-border CBDC transactions for international trade settlement. 

During the same period, the bank intends to achieve proof-of-concept work for bilateral CBDC bridges with India, one of the UAE’s top trading partners. It would also enable proof-of-concept work for domestic CBDC issuance covering wholesale and retail usage. 

In a statement, H.E. Khaled Mohamed Balama, the Governor of the CBUAE, described the CBDC as one of the initiatives in the CBUAE’s FIT program that will further position and solidify the UAE as a leading global financial hub. According to Balama, launching the project marks a significant step in the evolution of money and payments. The CBUAE Governor believes the CBDC will accelerate the UAE’s digitalization journey and promote financial inclusion.

According to the CBUAE’s press release, the newly launched CBDC is a risk-free digital money issued and guaranteed by the central bank. The apex bank also considers the product a secure, cost-effective, efficient form of payment and a store of value. The bank’s authorities believe the CBDC will help address the pain points of domestic and cross-border payments, enhance financial inclusion, and support the move towards a cashless society.