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UAE’s central bank pilots cbank digital currencies transactions

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DUBAI (Reuters) – The Central Bank of the United Arab Emirates (CBUAE) on Wednesday completed the pilot of the world’s largest central bank digital currency (CBDC) transaction, along with other regulators including the People’s Bank of China digital currency. announced. Institute.

“The mBridge project has demonstrated faster, cost-effective and secure cross-border currency payments using central bank money, which has been identified as an economic priority for the G20,” CBUAE said. It will benefit not only participating companies, but also regional and international trade, he added.

The pilot is part of Project mBridge, which will experiment with cross-border payments using a common platform based on distributed ledger technology (DLT) that central banks can use to issue and exchange CBDCs.

Central banks around the world are racing to develop CBDCs to provide an alternative to cryptocurrencies, but are grappling with technical complexities.

About 100 countries, representing 95% of the world’s GDP, are using or considering CBDCs, according to the report. Atlantic Council.

Earlier this month, the financial messaging system SWIFT releases blueprint A global central bank digital currency (CBDC) network following an eight-month experiment with different technologies and currencies.

CBUAE’s six-week pilot project was conducted with the Hong Kong Monetary Authority, the Bank of Thailand, the People’s Bank of China’s Digital Currency Research Institute, and the Bank for International Settlements.

In this pilot, commercial banks in four jurisdictions used mBridge to make 160 payments and foreign exchange transactions totaling over 80 million dirhams ($21.78 million).

CBUAE Governor Khaled Mohammed Barama said in a statement that the project is part of CBUAE’s plan to “support the competitiveness, diversity and growth of the UAE’s financial sector in line with future economic trends.” said.

He added that the central bank will continue to set “the appropriate governance framework for an interoperable CBDC to bring tangible benefits to UAE businesses and consumers.”

($1 = 3.6729 United Arab Emirates Dirham)

Reported by Yousef Saba

Our criteria: Thomson Reuters Trust Principles.

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