The United Arab Emirates (UAE) plans to launch its digital dirham central bank digital currency (CBDC) in the fourth quarter of 2025. According to Central Bank of the UAE Governor Khaled Mohamed Balama, the blockchain-based digital currency aims to enhance financial stability and combat financial crime, ultimately benefiting the retail sector. The digital dirham will be integrated across all payment channels alongside traditional dirham. Recently, the digital dirham underwent a rebranding, introducing a new symbol that reflects stability, inspired by the UAE flag. In preparation for the digital dirham, a licensing framework for stablecoins was established in June 2024, clarifying regulations for payment tokens backed by the dirham. Notably, Tether announced plans to issue a dirham-backed stablecoin in collaboration with local partners, while other companies are also moving to secure approvals for similar stablecoin projects. Additionally, the Dubai Financial Services Authority recognized US dollar and euro stablecoins, signaling an ongoing growth of stablecoin adoption within the UAE market.
The United Arab Emirates (UAE) is set to roll out its central bank digital currency (CBDC), the digital dirham, in the fourth quarter of 2025. Central Bank Governor Khaled Mohamed Balama stated that this blockchain-based currency aims to enhance financial stability and fight financial crime, particularly benefiting the retail sector. The digital dirham will be accepted across all payment channels, alongside the traditional dirham.
Recently, the digital dirham received a rebranding, introducing a new symbol that symbolizes stability, inspired by the UAE flag. This initiative comes with the establishment of a licensing framework for stablecoins approved in June 2024, which provides clarity on regulations for tokens backed by the dirham.
Tether has announced plans to issue a dirham-backed stablecoin in collaboration with local partners, while other organizations are also working on similar projects. Furthermore, the Dubai Financial Services Authority has recognized US dollar and euro stablecoins, indicating a growing adoption of stablecoins within the UAE market.