UAE Central Bank Completes First CBDC Payment Transaction

Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Jaroslaw Adamowski
Author Categories
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: CBUAE

The Central Bank of the United Arab Emirates (CBUAE) has announced it has finalized mBridge, the world’s largest pilot of central bank digital currency (CBDC) transactions in cooperation with the Digital Currency Institute of the People’s Bank of China, its Chinese counterpart. Other partners included the Hong Kong Monetary Authority, the Bank of Thailand, and the Bank for International Settlements, the institution said in a statement

“This project – the first pilot use of wholesale CBDCs in the MENA region – reflects the CBUAE’s drive to create world-class financial infrastructure and innovative payment systems, which comes in line with UAE leadership’s directives to support the UAE’s economic competitiveness and empower the diversity and growth of the nation’s financial sector,” the CBUAE said.

Over the course of the “pilot project, commercial banks in the four jurisdictions used the mBridge platform to conduct over 160 payment and foreign exchange transactions totalling over AED80 million (USD22 million) over a six-week period,” according to the Emirati bank. 

The initiative demonstrated faster, cost effective and safe cross-border monetary settlements with the use of central bank money, the CBUAE said. 

mBridge “provides an efficient, regulatory-compliant and scalable cross-border payment solution with CBDCs at its core, designed to operate across different jurisdictions and currencies.”

Khaled Mohamed Balama, the bank’s governor, commented that the project reflects the UAE’s determination to establish the country as one of the leaders in the field of CBDC development and issuance, as well as the preferred regional hub for advanced financial infrastructure.

“This project is part of the CBUAE plan to support UAE competitiveness, diversity and growth of the financial sector in line with future economic trends. We will continue to establish the right governance framework for interoperable CBDCs to deliver tangible benefits to UAE companies and consumers,” the official said. 

In November 2021, reporting on the initiative’s progress, the bank said that 22 “project participants from all four jurisdictions identified fifteen possible business test cases to assess the mBridge Trial Platform’s ability to enhance real- world cross-border payments. The identified business test cases cover transactions across eleven industries (amounting to AED 1 billion) to be tested on the mBridge Trial Platform.”

“Five banks located in the UAE took part, including First Abu Dhabi Bank, Emirates NBD, Dubai Islamic Bank, HSBC, and Standard Chartered Bank, in some of these fifteen cases. International trade settlement was prioritised in the identified business test cases given the high volume of trade between the four jurisdictions, amounting to USD 731 billion,” according to the CBUAE. 

It is noteworthy the Middle East and North Africa (MENA) is the world’s fastest-growing market, and the UAE is the third-largest crypto market in all of MENA, according to a recent report by blockchain analysis firm Chainalysis.

More Articles

Price Analysis
Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Arslan Butt
Arslan Butt
2025-02-08 14:39:24
Price Analysis
Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Arslan Butt
Arslan Butt
2025-02-08 13:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors