UAE Takes the Lead in the Middle East’s Digital Currency Race
The post UAE Takes the Lead in the Middle East’s Digital Currency Race appeared com. Fintech What began as a concept on paper has now moved into reality. The United Arab Emirates has executed its first live transaction using a central bank digital currency, setting in motion one of the most ambitious financial technology overhauls in the Middle East. Key Takeaways The UAE has completed its first live Digital Dirham transfer through the mBridge blockchain system. The trial confirms operational readiness ahead of a phased rollout beginning in 2025. The initiative places the UAE at the forefront of the global CBDC race, linking Gulf and Asian payment systems. The project’s early focus is on government and interbank payments, not consumer use. This inaugural transfer, carried out between federal and local institutions, was less about the amount exchanged and more about what it represents: the UAE’s intent to anchor its financial future in programmable, instant, blockchain-based money. A Symbolic Two-Minute Test The transaction, completed in under two minutes, was processed through the government’s blockchain settlement network known as mBridge a platform co-developed with China, Hong Kong, and Thailand. To outsiders, it may seem like a technical demonstration, but within the region’s financial circles, it marks a clear signal: the UAE is building the plumbing for a digital economy that operates around the clock, without the friction of traditional settlement systems. Ahmed Ali Meftah, head of Dubai’s central accounts division, said the trial was meant to test the system’s readiness rather than its reach. The speed and security of the transfer, he noted, “prove that our infrastructure is ready to scale.” Reimagining Money for the Gulf The UAE’s Digital Dirham has been years in the making a national initiative designed to modernize payments and support a cashless economy. But unlike private stablecoins or fintech payment systems, this new digital currency is being issued directly by.
