TLDR
- The UAE successfully completes its first government payment with Digital Dirham via the mBridge platform.
- The payment was completed in less than two minutes, demonstrating the efficiency of the Digital Dirham system.
- The mBridge platform eliminates intermediaries and streamlines government payments for increased security.
- The UAE had previously tested the Digital Dirham in international operations, such as the Dh50 million payment to China.
- The Digital Dirham initiative supports the UAE’s goal of modernizing its financial infrastructure and improving payments.
The United Arab Emirates has successfully completed its first government payment using the Digital Dirham, the country’s central bank digital currency (CBDC). This transaction, carried out by the Ministry of Finance and the Dubai Department of Finance, marks an important step in integrating digital currencies into national financial transactions. The payment was completed in less than two minutes, demonstrating the efficiency and speed of the new system.
An important milestone for the Digital Dirham initiative
This payment represents a critical moment in the UAE’s digital dirham initiative, which is part of the country’s wider financial infrastructure transformation programme. The UAE Central Bank (CBUAE) developed the mBridge platform to facilitate government payments using CBDC. The operation successfully connected the Dubai Department of Finance and federal authorities, using a new technological infrastructure that eliminates the need for intermediaries.
The United Arab Emirates had previously tested the digital dirham in international operations. In January 2024, the country made a cross-border payment of Dh50 million to China. This pilot, conducted via the mBridge platform, involved collaboration with Chinese, Hong Kong and Thai authorities. It served as a test of the CBDC’s capacity for secure, instant international settlements. These tests validated that CBDC can be used for cross-border payments without intermediaries, providing an insight into future digital payment systems.
Streamlined government payments without intermediaries
The mBridge system enabled the UAE to make the latest government payment smoothly and quickly. The system’s ability to carry out settlements without intermediaries contributed to the transaction being both safe and efficient. Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at the Dubai Department of Finance, confirmed the success of the operation, noting that the transaction was completed seamlessly in less than two minutes.
The UAE’s CBDC initiative is a key component of the country’s drive to modernize its financial infrastructure. The authorities have emphasized that the integration of the digital dirham into government operations is in line with their vision to improve national payment systems and expand financial access. The initiative aims to position the UAE as a leader in financial innovation while strengthening its financial ecosystem both nationally and internationally.
