UAE Digital Dirham (e-AED)

According to the Central Bank of the UAE (CBUAE), the Digital Dirham is a core component of the Financial Infrastructure Transformation (FIT) Programme launched in February 2023. The Digital Dirham utilizes an intermediated two-tier distribution model where licensed financial institutions (banks, exchange houses, payment service providers) manage distribution and provide user wallets. It is built on Distributed Ledger Technology (DLT) using a permissioned blockchain and launched as a non-interest bearing, unremunerated, tiered CBDC with user limits on holdings and transaction values to mitigate disintermediation risks. The CBUAE issued the first Digital Dirham as legal tender in January 2024, with His Highness Sheikh Mansour bin Zayed Al Nahyan initiating the first cross-border payment on Project mBridge. According to reports, the mBridge platform has processed over $55 billion in cross-border transactions as of late 2025, representing a 2,500-fold increase from early 2022 pilots, with the digital yuan dominating settlement volumes at approximately 95% of total value settled. The UAE executed a Dh50 million cross-border transfer to China in January 2024 via mBridge. In November 2025, the Ministry of Finance and Dubai Department of Finance conducted the first government transaction using the wholesale Digital Dirham on mBridge, settling in less than two minutes. The UAE has bilateral CBDC partnerships with India, including MoUs signed in July 2023 for local currency settlements and payment system integration (UPI with UAE's IPP, RuPay with UAESWITCH). The Digital Dirham features non-resident access, offline availability, and cross-border capabilities. Federal Law No. 54 (October 2023) made digital currency legal tender in the UAE. The Digital Dirham symbol and wallet were revealed in April 2025, confirming a 2025 retail launch and full integration in 2026.

Updated: Feb 18, 2026