The UAE’s Central Bank (CBUAE) has announced the official symbol of the digital dirham, which is scheduled to be released in the retail market by the second half of 2025.
Digital dirham that enables tokenization
The UAE Central Bank (CBUAE) has announced significant advancements in the Digital Dirham Initiative, and has announced the official symbol of the country’s digital currency. We also confirmed retailer launches scheduled for the final quarter of 2025. This development is a key component of CBUAE’s Financial Infrastructure Transformation (FIT) programme and is designed to solidify the UAE’s position as a global leader in financial market infrastructure and digital financial innovation.
The digital dirham, supported by the 2023 federal decree number (54), is set to become fiat currency, and will be accepted across all payments and channels along with physical currency. According to the statement, CBUAE aims to create a safe and efficient digital version of the national currency, leveraging blockchain technology to reduce payment costs and ensure data privacy.
Individuals and businesses can access digital dirhams through licensed financial institutions such as banks, exchanges, financial companies, and fintech companies. In its statement, CBUAE highlighted the key benefits of digital dirhams, including its ability to promote tokenization to improve financial inclusion and liquidity. We also cited compatibility with smart contracts for automatic and instant transaction settlement.
He Khaled Mohamed Balama, governor of Cbuae. “We are proud to announce today the new UAE symbol of “Dirham” and digital Dirham wallet design in both physical and digital forms, and “Dirham” which reflects the significant advances in the implementation of the digital dirham program and Leap in realizing Cbuae’s vision.
To support Digital Dirham, Cbuae has developed an integrated, secure platform that includes a user-friendly digital wallet. The wallet allows for a variety of financial transactions, including retail, wholesale, and cross-border payments. The platform is designed to accommodate innovative financial solutions that cater to the UAE’s rapidly growing digital economy.
Barama added: “Digital Dirham as a state-of-the-art blockchain-based platform is expected to significantly enhance financial stability, inclusion, resilience and combat financial crime. Additionally, it will enable the development of innovative digital products, services and new business models, allowing for increased access to international markets.”
CBUAE’s initiative aims to establish a flexible and sophisticated financial system, enhancing the UAE’s competitiveness as a major financial hub and global digital payments platform.
