UAE Authorities Plan to Launch Digital Dirham in Q4 2025

The Central Bank of the UAE approved a new symbol for the national currency and confirmed plans to launch the digital dirham (CBDC) in Q4 2025 as part of a large-scale financial infrastructure transformation.

The Central Bank of the UAE (CBUAE) unveiled the new dirham symbol in both physical and digital forms. At the same time, progress was confirmed in preparations for issuing the digital dirham, a national digital currency that will be recognized as legal tender alongside cash. The retail issuance is expected by late 2025, according to Emirates News Agency.

The physical currency symbol represents the first letter of the Latin word “Dirham,” complemented by two horizontal lines symbolizing stability. The digital dirham symbol is encircled by the colors of the UAE flag, reflecting national identity and ambitions to build a global digital financial system.

The digital dirham will be issued on a blockchain-based platform with high-security standards, reducing transaction costs, enabling instant payment processing, supporting smart contracts, and allowing asset tokenization. It’ll be accessible through licensed banks, exchange offices, FinTech companies, and financial institutions.

The CBUAE also introduced a digital wallet and an integrated platform designed for retail, wholesale, and cross-border payments, transfers, deposits, and digital asset withdrawals. The platform’s architecture is tailored for rapid adaptation to innovative financial products and the growth of the country’s digital economy.

Khaled Mohamed Balama, Governor of the Central Bank of the UAE, stated that the digital dirham and its infrastructure will significantly enhance financial resilience, inclusivity, and fraud prevention while reducing costs and expanding access to international markets.

The CBUAE is the first regulator in the Arab world to join the FX Global Code and introduce a unique symbol for its currency. This initiative is part of the Financial Infrastructure Transformation (FIT) program launched in 2023, emphasizing the CBUAE’s commitment to strengthening confidence in the national currency on the global financial market.

The measures aim to solidify the dirham’s status as a globally integrated currency, reinforcing the UAE’s position as an international financial hub and a digital payments leader. 2024 saw a significant rise in crypto-asset popularity within the country, further establishing the UAE as a key player in the MENA region’s digital payments sector.