UAE’s First Digital Dirham Transfer on mBridge CBDC Platform
The first cross-border digital dirham transfer using the mBridge central bank digital currency (CBDC) platform was conducted by the central bank of the United Arab Emirates (UAE) on January 29. The transfer, worth 50 million AED ($13.6 million), was sent to China via the multi-CBDC bridge platform mBridge. The chairman of the Board of the Central Bank of the UAE, Sheikh Mansour, performed the CBDC transfer as part of the golden jubilee celebration of the central bank’s establishment.
The mBridge project was launched in 2021 by the central monetary authorities of China, Hong Kong, Thailand, and the UAE in collaboration with the Bank of International Settlement (BIS). It is a unique international partnership that includes China. After completing its pilot phase in September 2022, the mBridge platform was commercially launched a year later in September 2023. The project has onboarded several commercial banks from each participating nation to contribute to the infrastructure and technology.
The mBridge Ledger platform utilizes a single-platform, direct-access infrastructure that enables real-time, peer-to-peer transactions with the HotStuff+ consensus mechanism. This CBDC platform facilitates faster transfers of each participant country’s national digital currency. The progress made by mBridge has also been recognized by the United States Congress. Maxine Waters, the ranking member of the House Financial Services Committee, expressed concerns about the potential misuse of the project to evade economic penalties.
With the increasing popularity of blockchain technology and the use of digital currencies on distributed ledgers, governments worldwide have begun exploring the creation of national digital currencies issued by their central banks. According to a report from the BIS, approximately 90% of central banks worldwide are considering adopting CBDCs. Currently, 11 countries have already launched their CBDCs, 15 are in the pilot stage, and 26 are in the development phase, according to the CBDC tracker from the think tank Atlantic Council.
5 thoughts on “UAE’s First Digital Dirham Transfer on mBridge CBDC Platform”
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I’m worried about the potential economic implications of using CBDCs. Will it destabilize the global financial system?
It’s frustrating to see governments prioritizing digital currencies over more pressing issues, like poverty and inequality.
I can’t believe they would send such a large amount of money to China. Don’t they know about the political tensions between the two countries?
It’s concerning that the project is supported by the Bank of International Settlement. Are they really looking out for the best interests of the UAE?
The mBridge project is a true collaboration of nations! The partnership between China, Hong Kong, Thailand, and the UAE, along with the BIS, shows the power of international cooperation.