The Central Bank of the UAE (CBUAE) has unveiled the official symbol for the Digital Dirham, set to launch in retail markets by late 2025.
Digital Dirham to Enable Tokenization
The Central Bank of the UAE (CBUAE) has announced significant progress in its Digital Dirham initiative, unveiling the official symbol for the nation’s digital currency. It also confirmed a planned retail launch in the final quarter of 2025. This development is a key component of the CBUAE’s Financial Infrastructure Transformation (FIT) Programme, designed to solidify the UAE’s position as a global leader in financial market infrastructure and digital financial innovation.
The Digital Dirham, underpinned by Federal Decree-Law No. (54) of 2023, is set to become a legal tender, ensuring its acceptance across all payment outlets and channels alongside physical currency. According to a statement, the CBUAE aims to create a secure and efficient digital version of the national currency, leveraging blockchain technology to reduce payment costs and ensure data privacy.
Individuals and businesses will be able to access the Digital Dirham through licensed financial institutions, including banks, exchange houses, finance companies, and fintech firms. In the statement, the CBUAE highlighted key advantages of the Digital Dirham, including its ability to facilitate tokenization for improved financial inclusion and liquidity. It also cited its compatibility with smart contracts for automated and instant transaction settlements.
H.E. Khaled Mohamed Balama, Governor of the CBUAE, said: “We are proud to unveil today the new symbol for the UAE’s national currency the ‘Dirham’ in both its physical and digital forms, and the design of the Digital Dirham wallet. This reflects the significant advancements in the implementation of the Digital Dirham programme and a leap towards realising the CBUAE’s vision.”
To support the Digital Dirham, the CBUAE has developed an integrated and secure platform, including a user-friendly digital wallet. This wallet will enable a range of financial transactions, including retail, wholesale, and cross-border payments. The platform is designed to accommodate innovative financial solutions, catering to the UAE’s rapidly growing digital economy.
Balama added: “It is anticipated that the Digital Dirham as a blockchain based platform with cutting edge capabilities shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime. It will further enable the development of innovative digital products, services, and new business models, while reducing cost and increasing access to international markets.”
The CBUAE’s initiative aims to establish a flexible and advanced financial system, reinforcing the UAE’s competitive edge as a leading financial hub and global digital payments platform.
