In a groundbreaking step toward digital transformation, the UAE Ministry of Finance and Dubai\u2019s Department of Finance have successfully executed the country\u2019s first government transaction using the digital dirham. The initiative, conducted in collaboration with the Central Bank of the UAE (CBUAE), marks a major milestone in the experimental phase of the national digital currency project and reflects the UAE\u2019s leadership in embracing next-generation financial technologies.<\/p>\n
This trial transaction forms part of the Central Bank\u2019s broader Financial Infrastructure Transformation Program, aiming to fast-track the adoption of digital solutions and solidify the UAE\u2019s position as a global hub for financial innovation.<\/p>\n
A Strategic Move Towards a Digital Economy<\/p>\n
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President and Deputy Prime Minister of the UAE, Chairman of the Presidential Court, and Chairman of the Central Bank, hailed the digital dirham as a strategic pillar in building a fully integrated digital economy. He commended the successful execution of this first-of-its-kind government transaction between the federal government and the Government of Dubai, calling it a testament to the country\u2019s robust financial infrastructure and commitment to sustainable economic growth.<\/p>\n
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, emphasized the Ministry\u2019s dedication to accelerating digital transformation in public financial management. He noted that leveraging the digital dirham improves transparency and efficiency within the government\u2019s financial systems, aligning with the UAE\u2019s vision of a tech-driven, innovation-led economy.<\/p>\n
Writing on X (formerly Twitter), His Highness Sheikh Maktoum described the transaction as a pivotal moment in the UAE\u2019s financial transformation, highlighting the digital dirham\u2019s future role in streamlining both public and private sector payments.<\/p>\n
A National Milestone in Digital Payments<\/p>\n
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, called the move a transformational leap in financial technology application, stating it opens wide opportunities to enhance payment systems across government entities. He praised the effort as a model of institutional cooperation that boosts global confidence in the UAE\u2019s economic framework.<\/p>\n
Central Bank\u2019s Role in Pioneering Innovation<\/p>\n
Khaled Mohamed Balama, Governor of the Central Bank, underscored the significance of this launch, describing it as a milestone in the UAE\u2019s digital journey. He reaffirmed the Central Bank\u2019s commitment to working with strategic partners to deliver cutting-edge financial solutions that bolster economic resilience and ensure long-term stability.<\/p>\n
Abdulrahman Saleh Al Saleh, Director General of Dubai\u2019s Department of Finance and Vice Chairman of the Central Bank Board, expressed gratitude to the nation\u2019s leadership and applauded the level of integration between the federal and local financial systems. He emphasized the UAE\u2019s consistent leadership in adopting modern financial technologies and building a mature digital and institutional infrastructure.<\/p>\n
The Role of the \u201cAl Jisr\u201d Platform<\/p>\n
The experimental transaction was conducted via the \u201cAl Jisr\u201d (The Bridge) platform, a multi-CBDC payment system developed by the Central Bank. According to Ahmed Ali Moftah, Executive Director of Central Accounts at Dubai\u2019s Department of Finance, the transaction was completed in less than two minutes. He noted that the goal of this pilot is to enhance operational efficiency and speed up financial settlements between government bodies.<\/p>\n
The \u201cAl Jisr\u201d platform is fully integrated with the Central Bank\u2019s digital dirham initiative, functioning as a secure and efficient digital channel for issuing, receiving, and settling government payments. It eliminates intermediaries and streamlines transactions, ultimately lowering operational costs and improving financial accuracy.<\/p>\n
Driving Forward the UAE\u2019s Digital Vision<\/p>\n
By enabling faster transactions and greater transparency, this initiative supports the UAE\u2019s broader digital transformation agenda. It reinforces the nation\u2019s global standing as a leader in advanced fintech adoption and sets a blueprint for future financial modernization.<\/p>\n
The successful implementation of the digital dirham in government dealings signals a promising future for digital currency integration across all sectors\u2014enhancing economic competitiveness, boosting trust in digital systems, and paving the way for a fully digitized national economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
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