The Institute of Chartered Accountants in England and Wales (ICAEW) has partnered with the UAE Banks Federation (UBF) to guide companies through the rapidly evolving digital assets landscape, as the market is projected to reach $80 billion by 2024. This collaboration aligns with the UAE’s advanced pilot of Central Bank Digital Currencies (CBDCs), positioning the nation as a leader in financial innovation.
CBDCs are digital versions of a country’s sovereign currency, issued and regulated by the central bank. Designed to work alongside traditional currencies, they offer a secure and efficient means of digital transactions. The UAE is among only 36 countries currently piloting CBDCs.
In a recent joint virtual event, ICAEW and UBF hosted a panel of experts to discuss the dynamic landscape of the UAE’s digital currencies. The panel included:
- Jamal Saleh, Director General, UAE Banks Federation (UBF)
- Asim Rasheed, Group Financial Controller, ENBD
- Gautam Dutta, Global Head of Cash Product Management and Innovation, FAB
- Ian Pettigrew, Director – Treasury Solutions Group, Global Payments Solutions, HSBC Bank Middle East
- Reuben Wales, Head of Financial Services, ICAEW
The discussion highlighted the inevitability of full financial digitisation, with the UAE already leading in AI adoption. Panellists explored the transformative potential of CBDCs in banking, noting their stability and security compared to volatile cryptocurrencies. CBDCs offer a reliable digital alternative to fiat currency, promoting financial inclusion and enhancing traceability to combat financial crime.
However, the panel also addressed the challenges of this digital shift. As digitisation and AI adoption rise, so does the risk of cybercrime, necessitating strong security measures. The experts urged organisations to continuously strengthen their cybersecurity defenses to protect against evolving threats.
Another major topic was the lack of a standardised accounting framework for digital assets, leading to inconsistencies in reporting and potential regulatory challenges. Panellists called for industry-wide collaboration to develop clear accounting standards and emphasised the need for seamless cooperation between IT, audit, and finance teams to manage digital assets securely and compliantly.
The discussion underscored the UAE’s significant global role, accounting for 5-10% of global digital asset trading volume, highlighting its growing influence in the digital finance landscape.
Hanadi Khalife, Head of Middle East at ICAEW, praised the UAE’s leadership in adopting CBDCs and reaffirmed ICAEW’s commitment to guiding organisations through this transformation.
Jamal Saleh, Director General of UAE Banks Federation, emphasised the vast opportunities presented by digital assets, while also stressing the importance of robust cybersecurity measures and interdepartmental collaboration to ensure secure and compliant integration of digital assets.
