UAE Central Bank Signs Deal for CBDC Strategy

The United Arab Emirates (UAE) Central Bank has signed a deal with Al Masari, a digital asset advisory firm, to create a strategy for launching a Central Bank Digital Currency (CBDC).

The CBDC strategy was first unveiled in February as part of the central bank’s program to position the UAE as a global financial hub. The initiative was announced as part of the "Digital Money Initiative", which aims to define the CBDC framework and structure, develop use cases, identify technological and legal requirements, and present a blueprint for the CBDC capabilities.

The strategy will also include research and analysis of the impact, benefits and risks of introducing a CBDC across the different sectors of the economy, as well as engage and educate the public.

The UAE Central Bank has also joined forces with the cryptocurrency exchanges Binance and Bithumb, as well as regulatory and technical experts, to develop a regulatory framework and proposals for the launch of a CBDC. The proposed framework will also include guidelines and regulations for developing, issuing, trading and protecting CBDCs.

The move by the UAE Central Bank further shows the country’s commitment to becoming a leader in the Middle East for blockchain and cryptocurrency innovation, as well as creating a more transparent and efficient financial system.

The UAE Central Bank’s move to develop a CBDC strategy is a step forward in creating a digital economy and in driving, enabling and enhancing the country’s financial sector.

Conclusion

The UAE Central Bank has taken a significant step towards creating a digital economy by signing a deal with Al Masari to develop a CBDC strategy. The move is part of the bank’s goal to position the UAE as a global financial hub and to create a more transparent and efficient financial system.