UAE’s Digital Dirham CBDC Pilot Completes First Transaction in Under Two Minutes

• UAE successfully completes first transaction using its Digital Dirham CBDC pilot
• Payment executed via mBridge platform in under two minutes
  Marks the first major update since project announcement in March 2024
• Phased rollout expected, beginning with payment-only functions
• UAE joins global momentum — only three CBDCs have fully launched worldwide

The United Arab Emirates (UAE) has completed its first transaction using the country’s central bank digital currency (CBDC), marking a major milestone for the nation’s Digital Dirham project.

The transaction — completed in collaboration between the Ministry of Finance and Dubai Finance — was conducted through the mBridge platform, a blockchain-based system designed to enhance cross-border payments and government financial settlements.

According to the announcement, the successful test represents a key step toward broader CBDC adoption across both government and private sector operations.

First Major Update Since March Announcement

This marks the first significant progress report since the UAE’s Central Bank announced in March 2024 that the Digital Dirham rollout was expected to begin in Q4 2025.

The pilot aims to position the UAE at the forefront of digital finance innovation in the Middle East, enabling faster, more secure transactions between public institutions and private enterprises.

According to Ahmed Ali Meftah, Executive Director of Central Accounts at Dubai Finance, the transaction was completed in less than two minutes.

“The transaction was conducted to test operational readiness and ensure seamless technical integration with the Central Bank’s systems,” he said.

This rapid processing time highlights the potential efficiency gains of using digital currencies in large-scale government payments — significantly reducing settlement delays and administrative overhead.

Phased Rollout Strategy

In a policy paper released in July, the UAE Central Bank outlined its long-term CBDC roadmap.

The Digital Dirham is being developed to future-proof national currency for the digital age and support the country’s evolving digital economy.

The rollout will occur in multiple phases, beginning with payment functionalities only to avoid overlap with savings and interest-bearing products.

This cautious, structured approach reflects the UAE’s commitment to financial stability while advancing toward monetary digitization.

Global CBDC Landscape

The UAE joins a growing list of nations piloting central bank digital currencies.

As of now, only three CBDCs have fully launched globally — in Nigeria, the Bahamas, and Jamaica, according to the Atlantic Council CBDC tracker.

Meanwhile, over 49 countries remain in the pilot phase, including the European Union, Kyrgyzstan, and China.

CBDCs remain a contentious topic, with critics warning of potential privacy risks and financial sector disruption, while advocates argue they can enhance payment efficiency, reduce costs, and expand financial inclusion.

A Step Toward Digital Finance Leadership

The UAE’s first successful Digital Dirham transaction marks a major leap forward in its ambition to become a global leader in financial innovation.

With a nationwide rollout planned for 2025, the pilot demonstrates the government’s readiness to embrace next-generation payment infrastructure and set new standards for efficiency and interoperability in both domestic and international finance.