Key Takeaways
- UAE’s first digital dirham transaction completed in under two minutes.
- Rollout planned in phases, focusing first on payments.
- Marks major progress in UAE’s digital economy strategy.
- Only three CBDCs are fully launched globally.
UAE Completes First Digital Dirham Transaction
The United Arab Emirates (UAE) has successfully completed its first transaction using the digital dirham, marking a pivotal milestone in the country’s central bank digital currency (CBDC) pilot program. The government completed the transaction through its mBridge payment platform in under two minutes—signaling major progress toward digital transformation in the financial sector.
The Ministry of Finance and Dubai Finance announced the update on Tuesday, describing the pilot as “a step towards broader adoption of the national digital currency across both government and private sector operations.” The move represents the first tangible progress since the Central Bank of the UAE (CBUAE) revealed in March that it aimed to begin the rollout of the digital dirham in the fourth quarter of 2025.
Fast, Secure, and Efficient
Ahmed Ali Meftah, executive director of central accounts at Dubai Finance, said the test aimed to “ensure seamless technical integration with the Central Bank’s systems.” Completing the transaction in under two minutes underscored the CBDC’s potential to enhance operational efficiency, reduce settlement times, and streamline transactions between federal and local government entities.
This test highlights one of the key benefits advocates of CBDCs often emphasize—faster and more transparent financial settlements.
Phased Rollout and Cautious Approach
According to the CBUAE’s July policy paper, the digital dirham rollout will occur in phases, with initial functionality limited to payments. This measured approach is intended to avoid competition with savings and other interest-bearing financial products. The central bank has framed the CBDC as an effort to “future-proof central bank money” and adapt to the evolving demands of a digital economy.
Global CBDC Momentum Builds
Globally, CBDC development is accelerating, though only a few have reached full deployment. Data from the Atlantic Council shows just three active CBDCs—Nigeria’s eNaira, the Bahamas’ Sand Dollar, and Jamaica’s JAM-DEX—while 49 countries, including the UAE, remain in the pilot phase.
Conclusion
The UAE’s first digital dirham transaction showcases the nation’s growing leadership in digital finance innovation. As the CBDC pilot expands, the project could redefine how government and private sectors handle payments—bringing the UAE closer to a fully digitized, efficient, and future-ready financial system.
