The Central Bank of the United Arab Emirates (CBUAE) has partnered with G42 Cloud and R3 to implement its Central Bank Digital Currency (CBDC) Strategy. The CBUAE has engaged G42 Cloud as its infrastructure provider and R3 as its technology provider for the CBDC implementation. The CBDC is a risk-free form of digital money issued and guaranteed by the central bank, serving as a secure, cost-effective and efficient form of payment and a store of value.
The CBUAE has successfully conducted several CBDC initiatives, including the “Aber” project with the Saudi Central Bank in 2020 and the “mBridge” project with the Hong Kong Monetary Authority, the Bank of Thailand, the Digital Currency Institute of the People’s Bank of China and the Bank for International Settlements in 2022.
The first phase of the CBUAE’s CBDC Strategy is expected to be completed within the next 12 to 15 months and consists of three major pillars. The first pillar involves a soft launch of mBridge to facilitate real-value cross-border CBDC transactions for international trade settlement. The second pillar includes proof-of-concept work for bilateral CBDC bridges with India, one of the UAE’s top trading partners. Finally, the third pillar involves proof-of-concept work for domestic CBDC issuance, covering wholesale and retail usage.
