The Central Bank of the United Arab Emirates has unveiled a plan to digitize the country’s finances, within which we find the project of a digital currency.
The United Arab Emirates will create its MNBC
Through a press release, the Central Bank of the United Arab Emirates (CBUAE) disclosed that the country was going to have its own digital currency (MNBC). This announcement is part of a more general plan, detailing nine points whose aim will be to digitize the nation’s finance: the financial infrastructure transformation (FIT).
Khaled Mohamed Balama, the governor of the CBUAE, welcomed this initiative.
“The FIT program embodies the directions and aspirations of our wise leadership towards the digitalization of the economy and the development of the financial sector. We are proud to build an infrastructure that will support a thriving financial ecosystem in [Émirats arabes unis] and its future growth. »
According to the elements of the press release, this MNBC also seems to be moving towards wholesale operationsas with cross-border payments, only for “domestic use”.
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The content of the FIT program
In addition to issuing a digital currency, the financial infrastructure transformation program of the United Arab Emirates is articulated around several axes of development.
Although all these points have not been detailed in depth, what emerges in particular is a set of infrastructures aimed at facilitating regulatory requirements, such as an eKYC concept to reduce operating costs. On the other hand, a platform called Innovation Hub will be collaborative in order to help the development of fintechs.
Concerning payments, a “national card system” as well as an instant payments platform must be developed alongside the MNBC, although this has only been presented on the surface.
According to projections, the CBUAE is aiming for the year 2026 to see these different elements come to fruition. If the deadline seems ambitious, it is true that the United Arab Emirates has been keen on digitization, as proven by the Ministry of Economy by opening offices in the metaverse in September 2022.
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Source: CBUAE
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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