UAE Central Partners Selects Tech, Infrastructure and Legal Partners for CBDC Project

UAE Central Partners Selects Tech, Infrastructure and Legal Partners for CBDC Project

The Central Bank of the UAE (CBUAE) has launched its Central Bank Digital Currency (CBDC) Implementation Strategy in collaboration with R3, G42 Cloud and Clifford Chance.

For Phase 1, R3 and G42 Cloud have been selected as the technology and infrastructure providers of the initiative respectively, while Clifford Chance will provide critical legal oversight for the strategy. The strategy, which represents one of nine initiatives in the CBUAE’s Financial Infrastructure Transformation (FIT) Programme, sets out a roadmap for applying CBDC across a range of domestic and cross-border use-cases in the region.

The CBUAE’s commencement of its CBDC strategy represents a major milestone in the UAE’s path towards CBDC issuance. The first phase of the strategy, which is expected to take place over the next 12 to 15 months, comprises three primary pillars. These include initiating real-value cross-border CBDC transactions for international trade settlement, proof-of-concept work for bilateral CBDC bridges with India, and finally, proof-of-concept work for domestic CBDC issuance covering wholesale and retail usage.

As part of the CBUAE’s digital transformation programme, the implementation of the CBDC strategy will aim to address the pain points of cross-border payments, enhance financial inclusion and further strengthen the UAE’s payment infrastructure. The technological support will enable CBUAE to ensure the readiness