The United Arab Emirates is planning a significant change in international trade transactions. Reports suggest the country aims to reduce reliance on the US dollar and is set to introduce its digital currency, the Digital Dirham. The focus is on settling debts to China using this newly launched digital currency.
UAE Shifts from US Dollar to Digital Dirham for Trade with China
The UAE has a new digital currency, replacing the traditional one. This shift signals a change from the global dominance of the USD. It also reflects ongoing changes in the BRICS alliance. On Monday, Sheikh Mansour Bin Zayed Al Nahyan made this historic announcement.
He holds important positions, including Chairman of the Presidential Court, Deputy Prime Minister, Vice President, and chairs the Board of the country’s central bank. He kickstarted this development with a cross-border payment of Dh50 million using Digital Dirham. The money went directly to China through the ‘mBridge’ platform.
This transfer happened during the UAE Central Bank’s ‘Golden Jubilee’ celebration. The event marked the graduation of 1,056 citizens from the ‘Ethraa Emiratisation’ project’s first batch. The monetary authorities of the UAE, Thailand, Hong Kong, and China collaborated with the Bank of International Settlements in this significant development.
US Congress Member Expresses Concerns on UAE’s Digital Currency
In September 2022, the project’s initial pilot was completed. US Congress member Maxine Waters, part of the House Financial Services Committee (HFSC) raised concerns about mBridge, fearing it could help evade economic sanctions.
Sheikh Mansour emphasized the central banks’ role in endorsing economic development and supporting national endeavours for monetary and financial stability. The goal is to enhance the UAE‘s status as a global financial hub. The leadership is dedicated to empowering citizens by nurturing their skills and expertise.
The focus is on strengthening domestic personnel in the financial sector to meet global standards and contribute to the UAE’s overall development and cultural renaissance.
Tether’s Reaction Fuels Doubts on Tron Support Post Circle’s Decision
European Investors Eye Crypto ETFs Amid
Shibarium Hits New Milestones in Transactions and Wallets
You have not selected any currencies to display