UAE to Unveil Digital Dirham in Late 2025

The rollout plan was confirmed by CBUAE Governor Khaled Mohamed Balama, who told Khaleej Times that the Digital Dirham will serve as a strategic tool to bolster financial stability, improve transaction efficiency, and play a critical role in combating financial crime.

“The Digital Dirham will enhance the efficiency of payment systems, reduce costs, and increase accessibility across the financial sector,” said Balama. “It also provides a secure and regulated alternative to cash and private cryptocurrencies.”

The CBUAE has outlined a comprehensive vision for the Digital Dirham. It will be integrated across various layers of the financial ecosystem, including retail, wholesale, and cross-border payments, making it accessible to individuals, businesses, and government entities alike.

Licensed financial institutions—such as banks, exchange houses, finance companies, and fintech firms—will play a key role in distributing and integrating the CBDC. The central bank is also developing a dedicated digital wallet and platform to support seamless transactions and programmable financial services.

According to reports, the CBDC will support smart contracts, allowing for automated and conditional payments, as well as tokenization, which can improve the traceability and compliance of high-value and complex transactions.

CBUAE officials note that these features will not only streamline domestic payments but will also facilitate international trade and remittances, which are essential for the UAE’s globally connected economy.

To accompany the upcoming rollout, the central bank has unveiled an official symbol for the Digital Dirham. The logo includes the first letter of the Arabic word for "dirham" along with two horizontal lines, a design meant to convey strength, stability, and trust—values that are central to the UAE’s financial framework.

The visual identity of the Digital Dirham is part of a broader branding effort to familiarize citizens and businesses with the new digital currency ahead of its public release.

The UAE’s move places it firmly among a growing list of countries that are either piloting or fully launching CBDCs. China is advancing its digital yuan, Nigeria has launched the eNaira, and the European Central Bank is progressing with its Digital Euro plans. Meanwhile, the U.S. continues to evaluate a potential digital dollar under President Donald Trump's administration, which has shown mixed signals on the use of government-backed digital currencies.

The International Monetary Fund (IMF) and Bank for International Settlements (BIS) have both praised CBDCs as tools for improving monetary policy transmission and enhancing financial inclusion, particularly in economies with large unbanked populations or heavy reliance on cross-border remittances.

The Digital Dirham is a core pillar of the CBUAE’s Financial Infrastructure Transformation (FIT) program, launched in 2023. The FIT agenda includes a suite of initiatives aimed at creating a cashless, interoperable, and digitally resilient financial ecosystem.

The program also aligns with the UAE’s broader ambitions under "We the UAE 2031", a national economic vision focused on innovation, sustainability, and global competitiveness. The digital currency is expected to help the UAE diversify its economy, attract international investment, and support the growth of its burgeoning fintech sector.

Experts say the success of the Digital Dirham will depend on a variety of factors, including user adoption, cybersecurity, regulatory clarity, and interoperability with other CBDCs in the region and globally.

With the fourth quarter deadline fast approaching, the CBUAE is expected to release more technical documentation and engage in public awareness campaigns to ensure smooth onboarding for both financial institutions and end-users.

While many eyes in the region are watching closely, the UAE’s proactive and forward-thinking approach has already set a benchmark for others exploring the potential of sovereign digital currencies.

As the Digital Dirham nears launch, it promises not only to transform how money moves within the Emirates—but also how the UAE positions itself on the global financial stage.