Among other projects, the Central Bank of the United Arab Emirates (CBUAE) intends to develop a central bank digital currency (CBDC) as part of its attempts to become a financial and digital payment centre.
The measures are part of the Sunday-launched Financial Infrastructure Transformation (FIT) program, which seeks to help the local financial services industry via a number of initiatives.
The first stage of the initiative is the issuance of a CBDC for cross-border and domestic usage, which, according to the CBUAE, will “address the challenges and inefficiencies of cross-border payments and help spur innovation for domestic payments.”
The government also intends to build a unified card payment network to assist the expansion of e-commerce and an immediate payments platform to develop a cashless society.
Following the first phase of FIT, initiatives include a digital assets innovation centre and an e-Know Your Customer portal to combat illegal activities in the field.
Last week, Dubai’s virtual asset regulatory body issued new guidelines on virtual asset activities for projects operating inside the emirates, which included a prohibition on the issuance of “anonymity-enhanced cryptocurrencies,” popularly known as “privacy coins.”
Sheikh Hamdan bin Mohammed, the Crown Prince of Dubai, said last year that the city aspires to be one of the top 10 worldwide cities in the metaverse economy, generating 40,000 virtual employment and contributing $4 billion to the city’s economy over the next five years.
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