The Central Bank of the United Arab Emirates (CBUAE) has announced the successful completion of the world’s largest pilot project for Central Bank Digital Currency (CBDC) transactions. This groundbreaking initiative was conducted in collaboration with the Digital Currency Institute of the People’s Bank of China, alongside partners such as the Hong Kong Monetary Authority, the Bank of Thailand, and the Bank for International Settlements.
In a statement, the CBUAE emphasized that this pilot marks the first wholesale CBDC initiative in the Middle East and North Africa (MENA) region. The project is part of the UAE’s broader efforts to develop a world-class financial infrastructure and innovative payment systems, which align with the nation’s leadership’s vision to enhance economic competitiveness and foster growth within the financial sector.
The six-week pilot saw commercial banks across the four participating jurisdictions leverage the mBridge platform to complete over 160 payment and foreign exchange transactions. These transactions totaled more than AED 80 million (USD 22 million), demonstrating the potential for faster, safer, and more cost-effective cross-border monetary settlements using central bank-issued digital currencies. The mBridge platform is designed to be scalable, regulatory-compliant, and able to operate across various jurisdictions and currencies.
Khaled Mohamed Balama, Governor of the CBUAE, highlighted the UAE’s commitment to becoming a global leader in CBDC development and a preferred hub for advanced financial technologies. “This project reflects our determination to support the UAE’s financial competitiveness, promoting sector diversity and growth in line with global economic trends. We aim to establish a governance framework that ensures interoperable CBDCs deliver tangible benefits to businesses and consumers across the UAE,” said Balama.
The initiative’s origins trace back to November 2021, when the CBUAE announced its progress. Twenty-two participants from the four jurisdictions identified 15 business test cases to assess the mBridge platform’s potential in enhancing real-world cross-border payments. The test cases, spanning 11 industries and valued at AED 1 billion, included five UAE-based banks: First Abu Dhabi Bank, Emirates NBD, Dubai Islamic Bank, HSBC, and Standard Chartered Bank. Given the significant trade volumes between the participating regions—totaling USD 731 billion—international trade settlement was prioritized.
Notably, the MENA region is the fastest-growing market for cryptocurrencies, with the UAE ranked as the third-largest crypto market in the region, according to a recent report from blockchain analytics firm Chainalysis.
