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

On Feb. 12, 2023, the Central Bank of the United Arab Emirates (CBUAE) introduced the launch of a brand new initiative referred to as the “Financial Infrastructure Transformation Program,” which has 9 key aims. One of those aims is the analysis and growth of a central financial institution digital forex (CBDC) designed to deal with each cross-border funds and home use instances.

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

The Central Bank of the United Arab Emirates (CBUAE) goals to bolster the area’s monetary infrastructure with a new program, the “Financial Infrastructure Transformation Program” (FIT), which incorporates 9 key initiatives. The FIT aligns with the CBUAE’s mission to “enhance monetary and financial stability” by means of a “robust financial infrastructure” and the adoption of digital applied sciences.

The 9 initiatives included within the Financial Infrastructure Transformation Program (FIT) embrace: a home card scheme, eKYC, a central financial institution digital forex (CBDC), open finance, supervisory expertise, an innovation hub, an on the spot funds platform, a monetary cloud, and enhancing buyer expertise. The CBDC is designed for each cross-border funds and home use, with the aim of addressing inefficiencies in cross-border funds and selling innovation in home funds. Full integration of the FIT program is deliberate for 2026.

“The FIT programme embodies the directions and aspirations of our wise leadership towards digitizing the economy and developing the financial sector. We are proud to be building an infrastructure that will support a thriving UAE financial ecosystem and its future growth,” H.E. Khaled Mohamed Balama, the governor of the CBUAE mentioned in an announcement. “We will work with our companions to implement the programme, obtain its objectives, speed up the adoption of digital providers within the monetary sector, and appeal to the very best expertise.”

The Financial Infrastructure Transformation Program (FIT) is consistent with the imaginative and prescient 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 said that implementation updates might be offered after every initiative is accomplished. The aim is to “enhance the UAE’s competitiveness” as a world chief in monetary and digital funds. The UAE’s FIT program and CBDC initiative comply with the current CBDC pilot experiment by the Saudi Arabian Monetary Authority (SAMA).

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