The Central Bank of the United Arab
Emirates (CUBUAE) will launch a central bank digital currency (CBDC) as one of
the nine initiatives under its newly-launched Financial Infrastructure
Transformation Programme (FIT). The apex bank disclosed this on Sunday in a
press release published on its website.
According to the announcement, the other eight
initiatives include the launch of a Card Domestic Scheme, a system for
electronic know-your-customer verification and an open finance platform. Other
initiatives include the introduction of a supervisory technology, the design of an innovation hub,
creation of an instant payments platform, a financial cloud and a system that supports
excellent customer experience. All of these initiatives, including the CBDC,
will be fully integrated by 2026, the statement further said.
The bank explained
that the FIT programme was designed to support the country’s financial
services sector and position it for global competitiveness.
“With a full
integration set for 2026, the FIT Programme creates an important platform in
support of the country’s ‘We the UAE 2031’ vision and National Digital Economy
Strategy. It also further reinforces the CBUAE’s
mission to enhance monetary and financial stability and consumer protection
through robust financial infrastructure and the adoption of digital
technologies,” CBUAE explained.
The CBUAE’s new update on its CBDC vision
comes less than two years after the Middle East country joined other Asian
regulators including the People’s Bank of China on a
CBDC project that focuses on cross-border payments. CBUAE in
2021 also set out the country’s 2023-2026 CBDC roadmap with
seven objectives among which is to deploy artificial intelligence and big data
solutions to drive the United Arab Emirates’ (UAE) digital transformation in the financial
services sector.
A year earlier, the UAE in partnership with the
Saudi Central Bank concluded a joint one-year CBDC pilot project which
highlighted the benefits of using a distributing payment system over a
centralized payment structure.
Meanwhile, last year, the Central Bank of Iran announced plans to launch
‘crypto-rial,’ the country’s CBDC. The revelation came as the apex monetary authority of the country notified domestic banks and other credit institutions
about a series of regulations related to the digital currency.
Across the world, central banks are
still carrying out experiments on the feasibility and applicability of CBDCs. The European Central Bank
recently selected five companies
including Amazon to participate in its prototype exercise. About 30 Spanish banks also
recently partnered to carry out proof-of-concept trials.
However, while the
Bank of England is willing to pay £200,000 for a
proof-of-concept CBDC wallet, BoE Governor Andrew Bailey recently questioned the need for a
digital pound in front of the parliament’s Treasury
Select Committee.
The Central Bank of the United Arab
Emirates (CUBUAE) will launch a central bank digital currency (CBDC) as one of
the nine initiatives under its newly-launched Financial Infrastructure
Transformation Programme (FIT). The apex bank disclosed this on Sunday in a
press release published on its website.
According to the announcement, the other eight
initiatives include the launch of a Card Domestic Scheme, a system for
electronic know-your-customer verification and an open finance platform. Other
initiatives include the introduction of a supervisory technology, the design of an innovation hub,
creation of an instant payments platform, a financial cloud and a system that supports
excellent customer experience. All of these initiatives, including the CBDC,
will be fully integrated by 2026, the statement further said.
The bank explained
that the FIT programme was designed to support the country’s financial
services sector and position it for global competitiveness.
“With a full
integration set for 2026, the FIT Programme creates an important platform in
support of the country’s ‘We the UAE 2031’ vision and National Digital Economy
Strategy. It also further reinforces the CBUAE’s
mission to enhance monetary and financial stability and consumer protection
through robust financial infrastructure and the adoption of digital
technologies,” CBUAE explained.
The CBUAE’s new update on its CBDC vision
comes less than two years after the Middle East country joined other Asian
regulators including the People’s Bank of China on a
CBDC project that focuses on cross-border payments. CBUAE in
2021 also set out the country’s 2023-2026 CBDC roadmap with
seven objectives among which is to deploy artificial intelligence and big data
solutions to drive the United Arab Emirates’ (UAE) digital transformation in the financial
services sector.
A year earlier, the UAE in partnership with the
Saudi Central Bank concluded a joint one-year CBDC pilot project which
highlighted the benefits of using a distributing payment system over a
centralized payment structure.
Meanwhile, last year, the Central Bank of Iran announced plans to launch
‘crypto-rial,’ the country’s CBDC. The revelation came as the apex monetary authority of the country notified domestic banks and other credit institutions
about a series of regulations related to the digital currency.
Across the world, central banks are
still carrying out experiments on the feasibility and applicability of CBDCs. The European Central Bank
recently selected five companies
including Amazon to participate in its prototype exercise. About 30 Spanish banks also
recently partnered to carry out proof-of-concept trials.
However, while the
Bank of England is willing to pay £200,000 for a
proof-of-concept CBDC wallet, BoE Governor Andrew Bailey recently questioned the need for a
digital pound in front of the parliament’s Treasury
Select Committee.
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