UAE conducts its first transaction using the national digital currency

The financial authorities of the United Arab Emirates (UAE) have just conducted the first transaction using the national digital currency (Digital Dirham), marking a significant first step since the project was announced in March.

The experimental transaction was conducted through the government payment platform mBridge, which is in the pilot phase of the project. According to Dubai Finance, the transaction was completed in less than two minutes, demonstrating the potential for seamless technical integration with the Central Bank's system and the goal of enhancing payment efficiency among government agencies.

The UAE Central Bank stated that the implementation of the Digital Dirham will occur in phases, initially focusing on payment functions to avoid competition with interest-bearing financial products.

Currently, only three countries have officially launched CBDCs, including Nigeria, the Bahamas, and Jamaica, while 49 other countries are still in the testing phase, according to data from the Atlantic Council.