Digital Dirham Launch: UAE Makes History with First Digital Dirham Transaction

Landmark CBDC Payment Executed Through mBridge Platform

The United Arab Emirates has achieved a significant financial technology milestone by completing its first government transaction using the Digital Dirham. This pioneering central bank digital currency (CBDC) payment was jointly conducted by the Ministry of Finance and the Dubai Department of Finance in coordination with the Central Bank of the UAE. The transaction leveraged the innovative mBridge platform, achieving complete real-time settlement in under two minutes – demonstrating the remarkable efficiency of digital currency infrastructure.

FIT Programme Drives UAE’s Digital Payment Revolution

This successful pilot transaction forms a crucial component of the UAE’s ambitious Financial Infrastructure Transformation (FIT) Programme. The initiative represents a strategic push to modernize the nation’s payment systems and cement its status as a global fintech hub. By adopting CBDC technology, the UAE aims to enhance cross-border payment efficiency, reduce transaction costs, and establish new standards for financial innovation in the region. The Digital Dirham implementation reflects the country’s commitment to leading the digital economy transformation.

mBridge Technology Enables Seamless Cross-Border Settlement

The utilization of the mBridge platform for this historic transaction highlights the UAE’s focus on developing interoperable digital payment solutions. This blockchain-based system facilitates instant settlement between participating central banks, eliminating traditional intermediaries and processing delays. The successful execution underscores the practical applications of CBDCs in government finance operations while setting the stage for broader adoption across the UAE‘s financial ecosystem.