Dubai: The Ministry of Finance and Dubai Finance (DOF) have announced the successful execution of the UAE's first government financial transaction using Digital Dirham, in collaboration with the Central Bank of the UAE. This transaction represents a significant leap toward the widespread adoption of the national digital currency in government and private sector operations, marking a new milestone that cements the UAE's pioneering role in advancing financial technologies.
According to Emirates News Agency, this achievement is part of the pilot phase of the Digital Dirham project, launched by the Central Bank of the UAE under the Financial Infrastructure Transformation (FIT) Programme in partnership with local financial authorities. The project aims to accelerate digital payment adoption and reinforce the UAE's status as a global hub for financial innovation.
His Highness Sheikh Mansour bin Zayed Al Nahyan emphasized that the Digital Dirham is a strategic pillar in the UAE's pursuit to establish an integrated digital economy. He noted that the first government transaction, conducted by the Federal Government and the Dubai Government, showcases the high level of integration across national financial systems and the advanced technical infrastructure supporting sustainable financial growth.
H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum highlighted that using the Digital Dirham in government transactions reflects the Ministry of Finance's dedication to accelerating digital transformation in public finance management. He stressed that this strategic step enhances transparency and efficiency in government financial systems and aligns with the UAE leadership's vision of building a trustworthy digital national economy.
Mohammed Hadi Al Husseini, Minister of State for Financial Affairs, stated that the use of Digital Dirham marks a qualitative shift in leveraging financial technology, providing an opportunity to develop government and private payments. Conducting the first government transaction in partnership with the Central Bank of the UAE serves as a pioneering model of corporate integration, enhancing global confidence in the UAE's economic system.
Khaled Mohamed Balama, Governor of the Central Bank of the UAE, noted that launching the pilot phase of the Digital Dirham signifies a milestone in the UAE's digital transformation. He reiterated the Central Bank's commitment to developing advanced financial solutions that align with global shifts and strengthen the national economy.
Abdulrahman Saleh Al Saleh, Director-General of DOF, expressed gratitude to the UAE leadership for its commitment to adopting cutting-edge financial technologies. He highlighted the successful execution of the first government transaction using the Digital Dirham as a reflection of the high level of integration among the country's financial systems and the advanced digital infrastructure supporting national economic efforts.
Ahmed Ali Meftah, Executive Director of Central Accounts Sector at DOF, stated that the first pilot Digital Dirham transaction, executed through the mBridge platform, was conducted to test operational readiness and ensure seamless integration with the Central Bank's systems. The transaction was completed in less than two minutes, underscoring its goal of enhancing operational efficiency and expediting financial settlements.
The mBridge platform, developed by the Central Bank, enables secure and reliable financial settlements using the Central Bank digital currency. Fully integrated with the UAE's Digital Dirham initiative, it provides a unified channel for government payments, enhancing operational efficiency, speeding up transactions, reducing costs, and improving transparency.
This initiative underscores the UAE's progress towards a fully integrated digital economy and reinforces its leadership in adopting modern technological solutions across government, finance, and business sectors, promoting transparency, efficiency, integration, and sustainability across all government financial systems.