UAE’s ‘digital dirham’ CBDC pilot completes first transaction
The UAE has completed its first transaction using the digital dirham as part of its ongoing CBDC pilot. The Ministry of Finance and Dubai Finance confirmed that a government payment was successfully executed on the mBridge platform, settling in less than two minutes. The Central Bank of the UAE (CBUAE) described the transaction as a key achievement in testing the currency’s real-time capabilities.
Officials said the milestone demonstrates strong technical integration between the mBridge network and CBUAE systems, marking progress toward adopting digital currency for efficient cross-border and domestic settlements. The pilot aims to enhance financial connectivity, transparency, and speed in government and private-sector transactions, aligning with the UAE’s broader digital economy strategy and regional leadership in next-generation financial infrastructure.
What happened and why it matters
Authorities announced the first government payment using the Digital Dirham, calling it a milestone under the UAE’s Financial Infrastructure Transformation (FIT) Programme. The transaction, executed through mBridge, tested “operational readiness” and “seamless technical integration” with CBUAE systems, according to Dubai Finance’s Ahmed Ali Meftah. The payment completed in less than two minutes, highlighting potential efficiency gains for intergovernmental settlements. WAM
CBUAE leadership said the pilot strengthens national payment systems and financial stability, while the Ministry of Finance framed it as accelerating digital transformation in public finance. Officials positioned the pilot as groundwork for eventual, wider CBDC use cases while keeping early functionality focused on payments.
How the mBridge platform fits in
mBridge is a government payments platform used here to settle with CBDC, integrated so entities can issue, receive, and settle government payments digitally without intermediaries. The platform is fully connected to the Digital Dirham initiative during the pilot, aiming to speed transactions, reduce operational costs, and improve transparency. (Broader industry context: mBridge has been developed in collaboration with central banks to enable multi-CBDC settlements.
Timeline to rollout and the UAE digital dirham first transaction
The UAE has signaled a phased rollout, with early features limited to payments to avoid competition with savings/interest-bearing products. The inaugural transaction offers a public proof-of-concept for speed and integration, ahead of staged expansion to additional use cases once policy, technology, and compliance checks are met.
Global context and comparisons
Only a handful of CBDCs are fully live worldwide. The Atlantic Council’s tracker lists the Bahamas (Sand Dollar), Jamaica (Jam-Dex), and Nigeria (eNaira) as active CBDCs, while a record number of jurisdictions about 49 are in pilot phases. The UAE’s pilot sits within this broader trend of testing state-issued digital money while calibrating design choices around privacy, banking sector impact, and financial inclusion.
Policy guardrails and what’s next
Early UAE policy signals keep the CBDC’s initial feature set to payments, minimizing overlap with deposit products. Authorities emphasize interoperability, transparency, and efficiency. Next steps likely include expanded pilots across more government use cases, private-sector integrations, and staged public communications on privacy, data controls, and user protections before scaled deployment.
Analysis
The sub-two-minute settlement time demonstrates tangible latency benefits versus legacy rails for intergovernmental payments. The real test will be sustaining these gains under scaled volumes and multi-entity workflows, while providing clear privacy assurances and ensuring the design remains complementary not substitutive to commercial bank intermediation.
Conclusion
The UAE successfully completed its first Digital Dirham government payment through the mBridge platform, settling in less than two minutes. The transaction highlights the system’s technical readiness and validates the Central Bank of the UAE’s progress in the payments-only phase of its CBDC pilot.
Officials said this milestone lays the groundwork for expanding digital currency use in government and financial operations. Further phases will follow after meeting key policy, risk management, and operational requirements, paving the way for broader adoption of the Digital Dirham across sectors and strengthening the UAE’s position in global digital finance innovation.
FAQs
Q : What is the Digital Dirham?
A : A central bank digital currency (CBDC) issued by the Central Bank of the UAE for faster, transparent payments in the digital economy.
Q : How fast was the first transaction?
A : Officials said it settled in under two minutes during the pilot test.
Q : Which platform handled the payment?
A : The test used mBridge, integrated with the Digital Dirham system for issuance, receipt, and settlement.
Q : When will public rollout happen?
A : The UAE plans a phased rollout, starting with payments; timelines and features will expand after pilot validation.
Q : How does this compare globally?
A : Only three CBDCs are fully live (Bahamas, Jamaica, Nigeria) while many others remain in pilots.
Q : Will the CBDC replace bank deposits?
A : Not in the pilot; early features focus on payments to avoid competition with savings or interest-bearing products.
Q : Does the UAE Digital Dirham first transaction affect cross-border payments yet?
A : The pilot demonstrates readiness and speed; broader cross-border use would come with later phases and policy approvals.
Facts
Event
First UAE government transaction using the Digital Dirham (CBDC) via mBridgeDate/Time
2025-11-11T00:00:00+05:00 (time approximate; official timestamp not provided)Entities
Central Bank of the United Arab Emirates (CBUAE); Ministry of Finance (UAE); Dubai Finance (DOF); mBridge platformFigures
Settlement time < 2 minutesQuotes
“The transaction was completed in less than two minutes…” — Ahmed Ali Meftah, Executive Director, Central Accounts Sector, DOFSources
WAM (Emirates News Agency) https://www.wam.ae/en/article/bmnwryz-ministry-finance-dubai-finance-conduct-first ; Gulf News https://www.gulfnews.com/business/banking/uae-conducts-first-government-transaction-using-digital-dirham-1.500342240