Soon Dubai citizens and residents will be able to make digital currency payments for school fees, utility bills and retail purchases.
Emcredit, a state-backed subsidiary of the Department of Economic Development, will release the stable digital currency emcash, a digital equivalent of the UAE dirham (AED). Emcredit is the primary supplier of credit information in Dubai.
The statement was a partnership announcement. Development has to be completed, and the group plans to submit the project to the government for testing and approval later in the year. It is unclear whether this will be a Central Bank Digital Currency (CBDC) or a stable coin. Given the government involvement, a CBDC is a possibility.
Subject to confirmation as a CBDC and depending on the launch date, apart from Venezuela, this will be the first substantial CBDC. Numerous significant economies are exploring the topic. Four months ago, the
BIS voiced its thoughts about CBDCs. It has reservations about retail use but is more relaxed about wholesale applications within the financial services sectors.
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