UAE set to be a leader in digital finance with CBDC

UAE set to be a leader in digital finance with CBDC

The country has made significant progress in developing its digital economy, mainly in e-commerce, digital payments, and fintech

By Abdulla Mohammed Saeed Saif Alriyami Published: Wed 5 Apr 2023, 10:46 PM

The UAE leadership is known for its ambitious vision for the future and desire to be at the forefront of digital transformation. The President, His Highness Sheikh Mohamed bin Zayed Al Nahyan, said, "Our reliance upon knowledge and scientific thinking to achieve total development is the only way to bring our nation to the stage of qualitative, non-oil production."

The UAE's central bank recently announced it is planning a digital currency. It's important to answer the three 'Ws' before we proceed: the why, who and what this means for the country's economy and people living here. In the larger context, the proposed Central Bank Digital Currency (CBDC) is a major step in the country's plan to diversity its economy. So why a develop a CBDC, and who will regulate it?

The UAE's Central Bank Digital Currency is a digital version of a country's fiat currency issued and backed by the central bank. Unlike cryptocurrencies such as Bitcoin that is decentralized and not issued by any central authority, CBDC are created and maintained by