Just-In: UAE Central Bank Sets CBDC Strategy Deadline

UAE Central Bank (UAECB) has announced its strategic objectives for 2023-2026, with their new and enhanced Digital Strategy that would include the much-awaited and grand launch of Central Bank Digital Currency (CBDC). UAE Central Bank has been discussing its interest in CBDC for a while now, and the 2023-2026 Strategy has provided a definite timeline of action to the earlier theory.

UAE Central Bank has been following the footsteps of International Monetary Funds (IMF) and the World Bank, by launching CBDC to promote digital transformation in UAE’s financial services sector, and to do the same, it has announced employing advanced artificial intelligence and big data solutions.

The CBDC technology will be used to look over, keep track of, and ensure the bank’s systems. It will also be used to deploy UAE’s digital ID infrastructure (UAE Pass) to increase financial diversity and approachability to financial services provided by UAE Central Bank.

UAE Central Bank Aims to be Among Top-10 Central Banks

UAE Central Bank expects to acquire a position amongst the world’s top 10 banks once the digital strategy has been completely rolled out.

CBDCs are a top priority for central banks around the globe who are working to launch a digital version of their national fiat using blockchain technology. Jon Cunliffe, chair of the Committee on Payments and Market Infrastructures and deputy governor for Financial Stability of the Bank of England said in a report prepared for the G20 meeting in Italy.

“CBDCs (central bank digital currencies) offers the opportunity to start with a ‘clean slate.’ It is crucially important that central banks take the cross-border dimension into account,”

The Digital strategy promotes a sustainable approach towards digital development by strengthening the UAE’s ‘green economy’ mission. The 2023-2026 plan of action will focus on enhancing the eco-conscious development towards innovative financial infrastructure in UAE.

China is currently leading the CBDC race having developed its national sovereign digital currency by 2019, currently, they are mass testing various use cases set for a countrywide launch very soon.