The United Arab Emirates is set to launch a central bank digital currency.
The country expects this technology to tackle the issue of inefficiency in cross-border payments.
- The news regarding this plan was announced by the UAE's Central Bank.
- In addition to cross-border payment efficiency, the country believes a CBDC can help foster local innovation in the field of cryptocurrency and Web3.
- Besides a CBDC, the report mentions concepts such as instant payments and open finance as one of the nine priorities for the Central Bank. Both of these ideas are considered two of the defining features of cryptocurrency.
- This currency will be named the digital dirham.
- A report in 2022 showed that 11.4% of UAE's residents have invested in cryptocurrencies, ranking 10th globally.
