To support the UAE’s standing as a major international financial center, the Central Bank of the UAE (CBUAE) introduced a new symbol for the Dirham, the nation’s currency.
A new identity
The UAE flag served as an inspiration for the new Dirham symbol, which is based on the English letter “D” and features two horizontal lines that stand for financial stability. It will be utilized globally to endorse the UAE’s money in overseas marketplaces.
The Digital Dirham, the currency’s digital counterpart, will also have a circular design that incorporates the colors of the UAE flag to represent both modern financial evolution and national pride.
Additionally, the CBUAE gave updates on the Digital Dirham, a crucial component of its 2023-launched Financial Infrastructure Transformation (FIT) Program. The Digital Dirham, which is anticipated to be implemented in the retail industry in late 2025, intends to improve security and financial efficiency. It will lower transaction costs and enhance risk management and data privacy because it is based on blockchain technology.
Access to the Digital Dirham will be made easier by licensed financial institutions including banks, exchange houses, finance companies, and fintech companies. It will be accepted by law as a universal form of payment in addition to cash.
Key features of the digital Dirham
To promote innovation and financial inclusion, the Digital Dirham will include cutting-edge financial innovations, such as:
Tokenisation – Enabling fractional ownership of digital assets, improving liquidity.
Smart Contracts – Allowing automated execution of complex financial transactions, ensuring instant settlement and compliance with predefined conditions.
The CBUAE has created a safe platform with a Digital Dirham wallet in order to support the Digital Dirham. This system will facilitate a number of transactions, such as money transfers, withdrawals, top-ups, and retail, wholesale, and cross-border payments. As the UAE’s digital economy develops, the platform is made to work with new financial products, enhancing the nation’s position as a pioneer in international digital payments.
Khaled Mohamed Balama, Governor of the CBUAE, stressed the importance of these initiatives, stating: “We are proud to introduce the new Dirham symbol and the Digital Dirham wallet, marking a significant milestone in the UAE’s financial sector. This step brings us closer to realizing our vision for a secure, efficient, and innovative financial ecosystem.”
He also emphasized how the blockchain-based architecture of the Digital Dirham will fight financial crimes and improve resilience, inclusivity, and financial stability. It is also anticipated to boost access to global markets, encourage innovation, and lower prices.
With these advancements, the UAE solidifies its standing as a major financial and technical center worldwide and keeps up its leadership in the digital financial transformation.
