The Central Bank of The UAE has successfully completed its first cross-border transaction using a digital version of its currency, the dirham. This transaction, occurring on January 29, involved the transfer of 50 million dirhams (approximately $13.6 million) to China through the mBridge central bank digital currency (CBDC) platform. Launched in 2021, the mBridge project is a collaborative effort involving the central monetary authorities of China, Hong Kong, Thailand, and the UAE, in conjunction with the Bank for International Settlements – BIS.

The mBridge platform, which uniquely includes China in its international partnership, completed its pilot phase in September 2022 and was officially launched in September 2023. It brings together multiple commercial banks from member countries to improve the underlying infrastructure and technology.

In the context of increasing interest in blockchain and cryptocurrencies, governments worldwide are exploring the potential of national digital currencies issued by central banks. According to a BIS report, approximately 90% of central banks are contemplating CBDC projects, with 11 countries having launched them, 15 in pilot phases, and 26 in development stages.