On February 12, 2023, the Central Bank of the United Arab Emirates (CBUAE) announced the launch of a new initiative called the “Financial Infrastructure Transformation Programme”, which has nine key objectives. One of these goals is the research and development of a central bank digital currency (CBDC) designed to address both cross-border payments and domestic use cases.
United Arab Emirates CBDC initiative to address inefficiencies in cross-border payments and boost domestic innovation
The Central Bank of the United Arab Emirates (CBUAE) aims to strengthen the financial infrastructure of the region with a new program, the “Financial Infrastructure Transformation Program” (FIT), which includes nine key initiatives. The FIT is aligned with the CBUAE mission to “improve monetary and financial stability” through a “robust financial infrastructure” and the adoption of digital technologies.
The nine initiatives included in the Financial Infrastructure Transformation (FIT) Program include: a national card scheme, eKYC, a central bank digital currency (CBDC), open finance, supervisory technology, an innovation hub, a platform instant payments, a financial cloud, and improve the customer experience. The CBDC is designed for both cross-border payments and domestic use, with the goal of addressing inefficiencies in cross-border payments and promoting innovation in domestic payments. Full integration of the FIT program is planned for 2026.
“The FIT program embodies the directions and aspirations of our wise leadership towards the digitization of the economy and the development of the financial sector. We are proud to build an infrastructure that will support a thriving UAE financial ecosystem and its future growth,” HE Khaled Mohamed Balama, Governor of CBUAE, said in a statement. “We will work with our partners to implement the program, achieve its goals, accelerate the adoption of digital services in the financial sector, and attract the best talent.”
The Financial Infrastructure Transformation (FIT) Program is in line with the vision of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court, and Chairman of the Board of Directors of the Central Bank of the UAE ( CBUAE). The CBUAE has stated that implementation updates will be provided after each initiative is complete. The goal is to “enhance the UAE’s competitiveness” as a global leader in financial and digital payments. The UAE’s FIT program and CBDC initiative follow the recent CBDC pilot experiment of the Saudi Arabian Monetary Authority (SAMA).
What do you think about the UAE Financial Infrastructure Transformation Program? Let us know in the comments below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
