The UAE Central Bank (CBUAE) is set to introduce digital currency in a bid to crack the top ten of central banks. The central bank digital currency (CBDC) launch is part of the central bank’s 2023-2026 strategy and its ambition to operate in the higher echelons of international central banking.
There are seven objectives in all, all of which centre on greater use of technology. Alongside the issuance of digital currency, the central bank wants to promote digital transformation in the UAE’s financial services sector, increase financial inclusion through the use of digital IDs and use AI and machine learning to improve monitoring.
“Besides seeking to develop advanced and secure cloud infrastructure to operate financial and insurance services, the strategy aims to support the UAE’s green economy efforts and continue work to develop more innovative financial infrastructure to boost the UAE’s competitiveness in this field,” the CBUAE said in the statement to local news agency, WAM.
The UAE has been one of the prime movers on CBDC development. In February it was announced that the CBUAE was working with three other central banks from Thailand, Hong Kong and China as well as the Bank of International Settlements, to collaborate on a digital currency project for cross-border payments, called Project Inthanon-LionRock CBDC. The CBUAE has also worked with its counterpart in Saudi Arabia to develop blockchain projects including a dual-issued CBDC for cross border payments.