- The central bank of the United Arab Emirates (UAE) conducted its first cross-border digital dirham transfer using the mBridge central bank digital currency (CBDC) platform.
- The cross-border CBDC transfer was worth 50 million AED ($13.6 million) and was sent to China.
- Project mBridge was introduced in 2021 by the central monetary authorities of China, Hong Kong, Thailand, and the UAE in partnership with the Bank of International Settlement (BIS).
- The project completed its pilot in September 2022 and was commercially launched a year later in September 2023.
The central bank of the UAE has made its first cross-border digital dirham transfer using the mBridge CBDC platform. The transfer, worth 50 million AED, was sent to China. This demonstrates the potential of CBDCs for facilitating cross-border transactions. Project mBridge, which involves China, Hong Kong, Thailand, and the UAE in partnership with the BIS, completed its pilot last year and was commercially launched in September 2023. This initiative shows the collaboration between multiple countries in exploring the use of CBDCs for cross-border payments.
This successful transfer highlights the potential advantages of CBDCs, including faster and more efficient cross-border transactions. As more central banks explore and implement CBDCs, we can expect to see increased adoption of digital currencies for cross-border payments, potentially revolutionizing the global financial system.
The successful cross-border digital dirham transfer using the mBridge platform is a significant milestone in the development and adoption of CBDCs. It showcases the potential of CBDCs to streamline cross-border transactions and reduce reliance on traditional payment systems. With more countries and central banks exploring CBDCs, we can anticipate further advancements in the field, ultimately reshaping the way international payments are conducted. As the technology evolves and matures, CBDCs have the potential to become a key component of the future global financial landscape.
Original article: https://cointelegraph.com/news/uae-digital-dirham-transfer-mbridge-cbdc