UAE's Strategic Move: Digital Dirham Set to Launch by 2025

By: Eva Baxter

The United Arab Emirates is gearing up for a significant leap in its financial sector by introducing a central bank digital currency, the Digital Dirham, which is expected to launch in the final quarter of 2025. This initiative, spearheaded by the Central Bank of the United Arab Emirates (CBUAE), aims to bolster the nation’s financial inclusion and enhance its capabilities in combating financial crime by leveraging blockchain technology.

Governor Khaled Mohamed Balama of the CBUAE emphasized the transformative potential of the Digital Dirham. As a blockchain-based currency, it is poised to improve financial stability, facilitate secure transactions, and enable the development of innovative digital products and services. The currency will operate through a robust, regulated network that includes banks, fintech firms, and exchange houses. The technology underpinning the Digital Dirham supports smart contracts and tokenization, allowing users to engage in automated and complex financial transactions securely.

The UAE's commitment to digital transformation does not stop at the currency itself. Aesthetic updates include a redesigned symbol for the Dirham, reflecting a modern approach aligned with national visions of economic growth. The physical Dirham now features a bold "D" crossed by two horizontal lines, symbolizing stability and growth, while the digital rendition embraces the colors of the UAE’s flag encircling the iconic letter.

These changes coincide with the UAE's recent move to become the first Arab nation on the Global Foreign Exchange Committee, reflecting its dedication to transparency and integrity in global markets. The forthcoming launch of the Digital Dirham aligns with the UAE’s broader visions and ambitions to become a leader in blockchain and digital finance, paving the way for reduced costs and expanded international market access.