DUBAI: The United Arab Emirates has completed its first government transaction using the Digital Dirham, marking a major step towards digital finance and greater transparency in public spending.
The UAE joins a small group of countries, including China, Nigeria and the Bahamas, that have launched central bank digital currencies.
The UAE Ministry of Finance and Dubai Finance carried out the payment through the mBridge platform in under two minutes.
The move is part of the UAE Central Bank’s Financial Infrastructure Transformation (FIT) programme, which aims to speed up digital adoption across the country’s financial system.
Sheikh Maktoum bin Mohammed, Deputy Ruler of Dubai and Minister of Finance, said using the Digital Dirham in government transactions would “enhance transparency and efficiency” in financial operations.
Officials said the Digital Dirham will help improve payment efficiency, reduce costs, and make transactions between government entities faster and more secure.
Unlike cryptocurrencies such as Bitcoin, which are decentralised and not controlled by any authority, the Digital Dirham is issued and regulated by the UAE Central Bank — making it an official, government-backed digital currency.