Say goodbye to cash the UAE is rolling out the Digital Dirham, a fully regulated Central Bank Digital Currency (CBDC) designed to modernize payments and enhance financial inclusion.
What Is the Digital Dirham?
The Digital Dirham is a digital version of the UAE’s national currency, issued and regulated by the Central Bank of the UAE (CBUAE). Unlike cryptocurrency, it is legal tender backed by the government and is being introduced as part of the UAE’s Financial Infrastructure Transformation (FIT) Programme.
It will be used alongside cash and card payments, and aims to support faster, more secure transactions across the country.
When Is It Launching?
The CBUAE has confirmed:
- The Digital Dirham will roll out in late 2025 for retail use
- A full report has been released outlining policy and technical development progress
- Initial tests have already begun through pilot projects like mBridge
What Can You Use It For?
The Digital Dirham will allow residents and visitors to:
- Make in-store and online purchases
- Send pocket money to children digitally
- Transfer money peer-to-peer via mobile apps
- Use digital wallets even without an internet connection
It will also support programmable features like recurring payments and smart contracts.
Key Features at a Glance
| Feature | Description |
|---|---|
| Issuer | Central Bank of the UAE (CBUAE) |
| Currency Type | CBDC (Central Bank Digital Currency) |
| Retail Availability | Expected Q4 2025 |
| Usage | Online/offline payments, wallets, P2P transfers |
| System Model | Two-tier model via regulated banks & wallets |
| Global Integration | Part of mBridge cross-border payment system |
Cross-Border Power: The mBridge Project
The UAE is collaborating with China, Thailand, Hong Kong, and Saudi Arabia on mBridge, a blockchain-based payment platform. It has already completed live test transactions using the Digital Dirham, making the UAE a global leader in cross-border CBDC innovation.
Why Launch the Digital Dirham?
- To modernize the UAE’s payment infrastructure
- To make financial services more inclusive and efficient
- To enhance cybersecurity and traceability in payments
- To support smart city, fintech, and blockchain ecosystems
What Happens Next?
- Retail roll-out begins late 2025
- Public educational campaigns will follow
- UAE residents can expect CBUAE-approved digital wallet apps and integrations with banks
Final Thoughts
The Digital Dirham is not just another payment method it’s a foundation for a smarter financial future. Backed by the UAE government and powered by cutting-edge technology, it will change how residents pay, save, and transfer money.
It’s secure, transparent, and fully aligned with the UAE’s vision for a digital economy.
Frequently Asked Questions (FAQ)
No, it’s a regulated digital currency issued by the UAE Central Bank, unlike decentralized cryptocurrencies.
Yes, the Digital Dirham will work alongside traditional cash and cards.
All UAE residents, businesses, and even tourists will be able to use it through approved digital wallets.
Yes, it’s backed by the government and uses secure infrastructure to protect user data and funds.
Eventually, yes. The UAE is working on cross-border CBDC payments with countries like China, Saudi Arabia, and Thailand via the mBridge platform.
