UAE to Launch Digital Dirham CBDC by Late 2025
The United Arab Emirates is gearing up to introduce its Digital Dirham CBDC for retail use by the end of 2025. This move aligns the UAE with other nations exploring central bank digital currencies.
According to Khaleej Times, the Central Bank of the UAE will release the digital AED for retail transactions in Q4 2025. It will be accepted alongside physical currency and accessible via licensed financial institutions.
The Digital Dirham will offer high security, tokenization, and smart contract features. This enables instant settlements and multi-party transactions. An integrated platform and wallet will support retail, wholesale, and cross-border transactions.
The UAEās digital currency journey started in June 2024 with a stablecoin regulatory framework. This led to initiatives like Tetherās plan to issue AED-backed tokens. However, the Digital Dirham CBDC represents a significant step. As a sovereign-backed currency, it offers more security and regulatory oversight than private tokens.
The UAE is also collaborating with Saudi Arabia on the āAberā project. This joint CBDC initiative explores cross-border payments using digital currencies.
Currently, the UAE is in the testing phase of its Digital Dirham. Other countries like Russia,china,and the UK are also running CBDC pilot programs. The European Central Bank is testing the digital Euro.
