The United Arab Emirates plans to launch its central bank digital currency, the Digital Dirham, between October and December as part of efforts to modernise the country’s financial infrastructure and enhance payment efficiency.
The Central Bank of the UAE confirmed the timeline and introduced a dedicated digital wallet along with a new symbol that will represent both the digital and physical versions of the dirham. Individuals and businesses will be able to access the Digital Dirham through licensed institutions such as banks, fintech companies, finance firms, and exchange houses.
The Digital Dirham is a blockchain-based version of the national currency issued and backed by the central bank. Unlike cryptocurrencies, central bank digital currencies maintain the stability of traditional fiat money while enabling faster and more transparent digital transactions.
According to the central bank, the system will help strengthen financial transparency and support efforts to combat financial crime by creating encrypted digital records that allow authorities to trace suspicious transactions.
The initiative is part of the UAE’s Financial Infrastructure Transformation programme launched in 2023, which aims to modernise the financial sector through technologies such as tokenisation and smart contracts.
Smart contracts will enable automated financial agreements and complex multi-stage transactions, while tokenisation could allow fractional ownership of assets and improve access to liquidity for a wider range of investors.
Users of the Digital Dirham will be able to perform domestic, wholesale, and cross-border payments through the new wallet system once it becomes available.
The UAE joins a growing group of countries exploring central bank digital currencies as governments seek to modernise payment systems and strengthen financial ecosystems.
