The UAE has marked a milestone for the digital economy by completing its first governmental transaction using the Digital Dirham.
The transaction, executed in collaboration with the Ministry of Finance, Dubai Finance and the Central Bank of the UAE, represents a significant stride towards the broader adoption of digital currency in government operations. The transaction was completed in under two minutes.
The transaction was facilitated via the mBridge platform, a government payments system. The mBridge platform, integrated with the Digital Dirham initiative, provides a comprehensive channel for central bank digital currency transactions. It enhances efficiency and transparency.
The Digital Dirham initiative symbolises the UAE’s unwavering progress towards a fully integrated digital economy.
This milestone forms a pivotal part of the pilot phase of the Digital Dirham project, set forth by the Central Bank under the Financial Infrastructure Transformation Programme. The project aims to foster digital payment systems and elevate the UAE’s standing as a global centre for financial innovation.
Ahmed Ali Meftah, Executive Director of Central Accounts Sector at DOF, said, “The first pilot Digital Dirham transaction, executed through the government payments platform, mBridge, was conducted to test operational readiness and ensure seamless technical integration with the Central Bank’s systems.”
He added, “The transaction was completed in less than two minutes, underscoring its goal of enhancing operational efficiency and expediting financial settlements between federal and local government entities.”
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of the Emirate of Dubai, the Deputy Prime Minister and Minister of Finance, emphasised that this initiative showcases the Ministry’s dedication to digital transformation within public finance management, aiming to bolster transparency and efficiency. This move is aligned with the UAE leadership’s vision of a sophisticated digital national economy.
