Catenaa, Wednesday, April 09, 2025 – The Central Bank of the UAE (CBUAE) plans to roll out the Digital Dirham, a blockchain-based version of the national currency, by the fourth quarter of 2025.
The move aims to revolutionize retail payments and further strengthen the country’s financial infrastructure.
The Digital Dirham will be integrated with high-security features, tokenization, and smart contract capabilities, enabling real-time settlements and seamless multi-party transactions. The Central Bank has developed an extensive platform and wallet to support retail, wholesale, and cross-border transactions.
The new digital currency will be available through licensed institutions such as banks, exchange houses, and fintech firms.
The UAE has steadily built towards this launch. In June 2024, the country introduced a regulatory framework for stablecoins, prompting initiatives like Tether’s plans to issue an AED-backed stablecoin on the TON blockchain. The CBUAE’s stablecoin initiative laid the foundation for this central bank-backed currency, which promises higher security, regulatory oversight, and trust compared to private digital tokens.
CBUAE Governor Khaled Mohamed Balama highlighted that the Digital Dirham would significantly boost financial stability, enhance inclusion, and combat financial crime. He also emphasized the long-term potential for the currency to foster innovation and reduce costs while increasing access to global markets.
As the UAE is recognized as one of the most crypto-enthusiastic nations, with a crypto ownership rate of 25.3%, the Digital Dirham is expected to drive further adoption.
The UAE is among 43 countries testing Central Bank Digital Currencies (CBDCs), joining the global trend led by the European Central Bank’s Digital Euro.
