According to The National news reports, the UAE’s Digital Dirham is now ready for rollout and will be introduced in phases very soon. Paul Kayrouz, chief FinTech officer at the UAE Central Bank, outlined the next steps during Abu Dhabi Finance Week, saying phase one includes several use cases aligned with the UAE’s digital economy goals.
Kayrouz said the Digital Dirham will be free for consumers and SMEs, emphasising accessibility as a core design principle. He noted that the currency will support instant settlement and provide the same trust and security associated with central bank money.
Tourist and cross border payments highlighted
A major feature of the launch will be support for tourists. Visitors will be able to top up a CBDC wallet from any account, convert foreign currency into Digital Dirham, spend it locally and reconvert remaining balances when leaving the UAE. Kayrouz said this capability is designed to streamline payments and reduce friction for international travellers.
The announcement follows the UAE’s first national Digital Dirham transaction conducted last month by the Ministry of Finance and the Dubai Department of Finance. The transfer was executed in less than two minutes using the mBridge platform, a cross border settlement system developed in partnership with the Central Bank.
Sheikh Mansour bin Zayed also carried out the first cross border Digital Dirham payment between the UAE and China, marking the official launch of a service intended to boost global transaction efficiency and strengthen the financial ecosystem.
The UAE began implementing its digital currency strategy in March 2023. The central bank says the Digital Dirham could reduce payment costs, improve remittances, and expand financial inclusion across the economy. It is also investigating biometric payments and the digitisation of bank guarantees to support trade finance.
Regulatory frameworks for stablecoins and digital assets are also progressing. Local rules require stablecoins to be fully backed by high quality liquid assets and subject to audit, signalling the UAE’s intent to balance innovation with safeguards.