As part of the first phase of its recently launched Financial Infrastructure Transformation (FIT) initiative, the Central Bank of the United Arab Emirates (CBUAE) has plans to introduce a central bank digital currency (CBDC) that will be valid both for international and local transactions. proceedings.

The Central Bank of the United Arab Emirates (CBUAE) recently made a statement announcing the FIT program and underlining its goal to help the country’s financial services industry. The UAE Central Bank underlined the fact that the scheme will boost digital transactions and help the UAE become more competitive as a digital payment and financial hub.

Issuance of a CBDC is required to advance to the next level of the FIT program. The issuance of a CBDC, in the words of the central bank, “would address the difficulties and inefficiencies of cross-border payments and help stimulate innovation for domestic payments, respectively.” CBUAE Governor Khaled Mohamed Balama said the FIT program would “help a flourishing UAE financial ecosystem and its future expansion.”

During the first stage of the program, in addition to a CBDC, the government intends to launch a unified card payment platform to “facilitate the growth of e-commerce,” as well as an instant payment platform to “support financial inclusion and allow a cashless payment”. society.” Both platforms are intended to be implemented to “facilitate the growth of e-commerce.”

Among the nine initiatives that make up the FIT program are those that will be launched during the first stage. After the first stage, other initiatives will be implemented, such as an e-Know your Customer portal and an innovation center.

The long-awaited “Full Market Product Regulations” were finally published on February 7 by the Dubai Virtual Assets Regulatory Authority (VARA). These regulations offer detailed instructions on virtual asset operations for projects that are operating within the emirate. The restrictions include a ban on the issuance of “anonymity-enhanced cryptocurrencies,” which are sometimes also called “privacy coins,” as well as similar actions.