UAE Launches ‘Financial Infrastructure Transformation’ Program; CBDC Among 9 Key Objectives

On Feb. 12, 2023, the Central Bank of the United Arab Emirates (CBUAE) announced the motorboat of a caller inaugural called the “Financial Infrastructure Transformation Program,” which has 9 cardinal objectives. One of these objectives is the probe and improvement of a cardinal slope integer currency (CBDC) designed to code some cross-border payments and home usage cases.

United Arab Emirates CBDC Initiative to Address Inefficiencies successful Cross-Border Payments and Drive Domestic Innovation

The Central Bank of the United Arab Emirates (CBUAE) aims to bolster the region’s fiscal infrastructure with a new program, the “Financial Infrastructure Transformation Program” (FIT), which includes 9 cardinal initiatives. The FIT aligns with the CBUAE’s ngo to “enhance monetary and fiscal stability” done a “robust fiscal infrastructure” and the adoption of integer technologies.

The 9 initiatives included successful the Financial Infrastructure Transformation Program (FIT) include: a home paper scheme, eKYC, a cardinal slope integer currency (CBDC), unfastened finance, supervisory technology, an innovation hub, an instant payments platform, a fiscal cloud, and enhancing lawsuit experience. The CBDC is designed for some cross-border payments and home use, with the extremity of addressing inefficiencies successful cross-border payments and promoting innovation successful home payments. Full integration of the FIT programme is planned for 2026.

“The FIT programme embodies the directions and aspirations of our omniscient enactment towards digitizing the system and processing the fiscal sector. We are arrogant to beryllium gathering an infrastructure that volition enactment a thriving UAE fiscal ecosystem and its aboriginal growth,” H.E. Khaled Mohamed Balama, the politician of the CBUAE said successful a statement. “We volition enactment with our partners to instrumentality the programme, execute its goals, accelerate the adoption of integer services successful the fiscal sector, and pull the champion talent.”

The Financial Infrastructure Transformation Program (FIT) is successful enactment with the imaginativeness of H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court, and Chairman of the Central Bank of the UAE’s (CBUAE) Board of Directors. The CBUAE has stated that implementation updates volition beryllium provided aft each inaugural is completed. The extremity is to “enhance the UAE’s competitiveness” arsenic a satellite person successful fiscal and integer payments. The UAE’s FIT programme and CBDC inaugural travel the caller CBDC aviator experiment by the Saudi Arabian Monetary Authority (SAMA).

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