• The UAE is planning to launch its central bank digital currency (CBDC), the Digital Dirham, by mid-2024.
• The first phase of the project will be completed in 12-15 months and includes three major pillars.
• G42 Cloud and R3 are the infrastructure and technology providers for the CBDC initiative.
UAE Unveils CBDC Strategy
The United Arab Emirates has announced its plans to launch a central bank digital currency (CBDC), known as the Digital Dirham, by mid-2024. The first phase of this project is expected to take 12-15 months to complete, with three major pillars supporting it. G42 Cloud and R3 have been chosen as the infrastructure and technology providers for this initiative.
Timeframe for Completion
The CBUAE revealed that work on the proof-of-concept for both retail and wholesale versions of their CBDC will begin shortly, with completion of phase one estimated at mid-2024. This timeline allows ample time for testing and implementation of any necessary changes before launching on a large scale.
The three pillars included in the first phase of this project are: an issuance process; a distributed ledger technology platform; and a cashier system to allow users to pay digitally with their smartphones or other devices using the Digital Dirham currency. Together these components will make up a secure ecosystem that facilitates digital payments within UAE’s economy.
G42 Cloud will provide cloud services while R3 will be responsible for building out blockchain applications tied to the project’s distributed ledger technology platform. Both companies have extensive experience in their respective fields, making them well suited partners for such an ambitious undertaking like this one from UAE’s central bank.
This move towards introducing a national cryptocurrency marks an important step forward for UAE’s economy, particularly as more countries around the world look into launching their own digital currencies in response to increasing consumer demand for faster transactions and greater financial inclusion in today’s digital age.