The Central Bank of the UAE (CBUAE) has announced a plan to introduce a central bank digital currency (CBDC) for both cross-border and domestic use.
The CBDC will be part of the Central Bank’s Financial Infrastructure Programme, which involves nine key initiatives, aimed at accelerating digital transformation in the financial services sector and promoting increased digital payment transactions.
Alongside the issuance of a CBDC, the first stage includes a series of digital payment infrastructures and services such as the launch of a Card Domestic Scheme and an Instant Payments Platform. The focus, according to the Central Bank is on furthering the drive towards financial inclusion, increased security and achieving a cashless society.
Following this, the UAE plans to develop and implement a range of digital infrastructures, including the establishment of Financial Cloud, eKYC and Open Finance Platforms. Among its goals will be to improve regulatory compliance, enhance innovation and reduce cost of operation, the Central Bank said.
With a full integration set for 2026, the FIT Programme is seen as 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.
Speaking on the announcement, H.E. Khaled Mohamed Balama, Governor of the CBUAE said,“The FIT Programme embodies the directions and aspirations of our wise leadership towards digitising the economy and developing the financial sector. We are proud to be building an infrastructure that will support a thriving UAE financial ecosystem and its future growth. We will work with our partners to implement the Programme, achieve its goals, accelerate the adoption of digital services in the financial sector and attract the best talent.”
