CBUAE Report Signals Near-Term Launch of Digital Dirham, Highlights Key Design Features

The Central Bank of the UAE (CBUAE) has published a comprehensive report detailing the progress, design principles, and policy framework behind its upcoming central bank digital currency, the Digital Dirham.

The report consolidates key achievements in the development of the Digital Dirham, signaling that the UAE’s CBDC is now entering the final stages before an official launch.

Functional Details

Beyond reaffirming its role as part of the Financial Infrastructure Transformation (FIT) program, the report highlights advanced features of the Digital Dirham, including offline usability, smart contract functionality, and cross-border payment capabilities. These are designed to enhance payment efficiency, broaden financial inclusion, and enable access for unbanked individuals and non-residents.

Policy and Market Readiness

The CBUAE stressed its collaboration with banks, financial institutions, and technology partners to ensure seamless adoption across retail and commercial use cases. A dedicated digital wallet platform will support transactions from online shopping and in-store payments to peer-to-peer transfers.

Governor H.E. Khaled Mohamed Balama described the Digital Dirham as a “key strategic initiative shaping the future of financial services in the UAE” and reaffirmed the central bank’s “consistent and prudent approach” to its rollout.

Next Phase: From Pilots to Launch

While the CBUAE has previously conducted cross-border trials and a real-value retail pilot, this latest report is the clearest indication yet that the official launch of the Digital Dirham is imminent.

The initiative reinforces the UAE’s position as a leader in CBDC development, aligning with global best practices from the IMF and BIS while promoting a secure, efficient, and inclusive payment ecosystem.

With the latest report, the CBUAE signals its readiness for the next phase of the Digital Dirham, underscoring its commitment to a careful, phased, and secure introduction into the market.

📌 For readers interested in further details:

Short policy report: Digital Dirham – A Primer on the UAE’s Central Bank Digital Currency
Technical working paper: Digital Dirham: Selected Issues and Policy Considerations