Introduction:
The UAE Central Bank has achieved a significant milestone by conducting the first-ever cross-border payment using its digital currency, the Digital Dirham. This pioneering transaction marks a pivotal moment in the nation’s journey towards establishing itself as a global financial hub.
First Cross-Border Transaction Details:
On January 29, Sheikh Mansour Bin Zayed Al Nahyan, Chairman of the Board of the Central Bank of the UAE, executed a cross-border transfer of Dh50 million to China using the Digital Dirham. This transaction was facilitated by the ‘mBridge’ platform, showcasing a direct financial connection between the UAE and China.
The Golden Jubilee Celebration and Financial Innovations:
The historic transaction coincided with the celebration of the Central Bank’s ‘Golden Jubilee’ and the graduation ceremony of the first batch of Emiratis from the ‘Ethraa Emiratisation’ program. At this event, Sheikh Mansour highlighted the UAE leadership’s strategic commitment to enhancing the nation’s financial and monetary stability and fostering economic growth.
Showcasing Innovative Projects:
The ‘Innovative Projects’ Pavilion at the Abu Dhabi National Exhibition Centre featured the Central Bank’s subsidiaries’ latest initiatives. Among these was the introduction of Al Etihad Payments company and the successful execution of the first financial transaction using a local payment card system with unique specifications. Additionally, the Sheikh was briefed on the Aani instant payment platform and the supervisory technology project ‘Suptech,’ launched by Al Etihad Payments in October 2023.
Conclusion:
The UAE’s successful implementation of the first cross-border payment using the Digital Dirham underscores the country’s dedication to financial technology and innovation. These efforts are instrumental in reinforcing the UAE’s vision of becoming a leading global financial center.