The Central Bank of the United Arab Emirates (UAE) said it will experiment with its own digital currency and launch it between 2023 and 2026.
According to local media reports, the UAE Bank intends to enter the top ten central banks that have launched the state-owned cryptocurrency. The UAE regulator has set a clear timetable for its implementation, including this initiative in its development plan for the next few years. The launch of the state digital currency implies the use of the UAE Pass digital identification system, which will increase the population’s access to financial services.
In addition, the UAE’s state development program includes the introduction of digital technologies, which will primarily be integrated into the finance industry through the use of artificial intelligence (AI) and big data. The UAE government also intends to apply the latest technologies in various monitoring and insurance systems.
The UAE Central Bank is actively exploring how government digital currencies can interact with existing payment systems. The regulator cooperates with other central banks on these issues. So, last year, the UAE Bank successfully tested the digital currency Aber with the Central Bank of Saudi Arabia for international payments. Later, the UAE Central Bank joined a project to study the potential of blockchain to facilitate cross-border payments.
The UAE is not only showing interest in creating its own digital currency, but also positioning itself as a blockchain and cryptocurrency-friendly country. Recall that in June, the country’s first traded exchange-traded funds (ETF), tied to Bitcoin, began trading on the country’s stock exchanges.
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