The United Arab Emirates has finally executed its first digital Dirham transaction. Accordingly, the long-hyped digital Dirham CBDC (Central Bank Digital Currency) pilot has blinked into action, after being announced back in March.
Digital Dirham CBDC Pilot
In a move that’s somehow both groundbreaking and yawn-inducing, the first test transaction was completed in under 2 minutes.
The transaction, powered by the government’s mBridge platform, involved the UAE Ministry of Finance and Dubai Finance. According to officials, this CBDC test marks “a step toward broader adoption” across government and private sectors.
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Dubai Finance’s Ahmed Ali Meftah said that the transfer was “completed in less than two minutes,” shaving 118 seconds off a government wire transfer, proving “operational efficiency”.
Originally slated for a Q4 2025 rollout, the CBDC is now being rolled out in cautious phases. At launch, it’ll do exactly one thing: payments. No savings, no interest, no competition with actual banks.
The UAE Central Bank insists the digital dirham is about “future-proofing” money, not replacing the financial system. Critics, meanwhile, warn the digital Dirham could become a privacy nightmare letting the government track every coffee bought.
The CBDC Fantasy
Globally, CBDCs remain more fantasy than reality.
Only three have launched so far in Nigeria, Bahamas and Jamaica, while 49 others, including the UAE’s digital Dirham are stuck in pilot purgatory.
Kyrgyzstan is planning one and has sparked major debate. The ECB is still studying the digital euro. Progress? More like procrastination with blockchain.
So while the UAE celebrates its CBDC’s baby steps, the rest of the world waits to see if this digital dream becomes a dystopian reality or just another forgotten pilot.
