Crypto News Today: UAE Completes First Transaction Using Digital Dirham

The UAE completes its first government payment using the Digital Dirham via mBridge in under two minutes, marking a digital milestone.

The United Arab Emirates has completed its first government financial transaction using the Digital Dirham. 

The event marks a major step in the country’s trend toward a fully digital economy. The transaction took place through the mBridge platform and was finished in under two minutes.

Digital Dirham project enters national use

The Digital Dirham pilot is part of the Central Bank of the UAE’s Financial Infrastructure Transformation (FIT) Programme. The programme was created to modernise payment systems, boost financial inclusion and strengthen the country as a financial hub.

Early last year, the UAE used the same platform to send 50 million dirhams to China. The transaction involved the People’s Bank of China, the Hong Kong Monetary Authority and the Bank of Thailand, all under the Bank for International Settlements’ Innovation Hub. 

It showed that central bank digital currencies (or CBDCs) can handle secure and instant cross-border payments.

The latest pilot moves the focus from international testing to domestic use. It shows how the UAE plans to make digital currency a normal part of financial activity, whether public or private.

UAE leaders commend digital progress

Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Central Bank of the UAE said the Digital Dirham is a major part of the country’s digital economy plans. 

He noted that the first government transaction shows the strength of national systems and the UAE’s advanced foundation.

He also said it shows the leadership’s vision of building a trusted financial system that supports economic growth over the long-term.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Minister of Finance described the event as a sign of progress in digital transformation. 

He said the Digital Dirham improves transparency and efficiency in government finance.

According to Sheikh Maktoum, the initiative will help align financial systems nationwide and support the UAE’s goal of building an advanced digital economy.

Officials praise Digital Dirham’s efficiency

Mohammed Hadi Al Husseini, Minister of State for Financial Affairs said the project shows a welcome change in how technology is used in finance. He noted that the Digital Dirham creates new ways for both government and private entities to process payments securely.

Khaled Mohamed Balama, Governor of the Central Bank called the pilot an important step in the country’s digital transformation. He said it shows the UAE’s focus on improving national payment systems and maintaining financial stability.

Balama added that the Central Bank will continue working with partners to build new tools that match global standards.

Transaction completed in under two minutes

Ahmed Ali Meftah, Executive Director of Central Accounts at the Dubai Department of Finance said the pilot was conducted through the mBridge system to test readiness and system integration.

He explained that the entire process took less than two minutes. The goal is to make settlements between federal and local government entities faster and more efficient.

Abdulrahman Saleh Al Saleh, Director General of the Dubai Department of Finance, commented on the successful transaction. He noted that it shows a high level of coordination between financial institutions and the Central Bank. 

He also said it shows the UAE’s strong digital infrastructure and the leadership’s commitment to new technology

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