The Central Bank of the UAE (CBUAE) has announced the launch of the CBDC (digital dirham)

The project is designed to transform the financial infrastructure and accelerate the digitization of the financial services sector in the country.

This strategy is an important step towards the development of the UAE's financial system and strengthening the country's position as one of the leading international financial centers.

According to the UAE Central Bank, the new digital form of CBDC is similar to cryptocurrency, however, the value of the digital dirham will be set by the CBUAE's financial and credit management and comply with the legal payment system.

The CBDC launch strategy consists of several stages. The first stage is expected to be completed this year and includes three directions:

- Launching the mBridge payment blockchain bridge for international transactions using the digital dirham.
- Developing a system of settlements in digital national currencies with India.
- A trial release of the digital dirham for testing in wholesale and retail trade in the UAE.

On March 15, the Central Banks of the UAE and India signed a memorandum on the use of digital national currencies for payments.

The introduction of CBDC will avoid problems that arise with domestic and international payments, and also increase the range and availability of financial services in the markets. Moreover, the digital dirham will strengthen the financial infrastructure of the Emirates. Furthermore, the new digital currency will provide secure, cost-effective, and efficient payments, as well as becoming an excellent means of capital preservation. This means that conducting real estate transactions in the UAE will become even easier.

Keywords: Central Bank of UAE CBUAE CBDC (Central Bank Digital Currency) Digital Dirham Cryptocurrency Blockchain technology Digital payments Financial innovation Monetary policy Cashless society Digital transformation Fintech industry Payment systems Digital economy E-wallets