Yesterday the UAE sent the first cross border payment using the UAE’s central bank digital currency (CBDC), the Digital Dirham. According to Gulf News, the payment of Dirham 50 million ($13.6m) was made to China. It used the mBridge cross border CBDC platform, where both countries are participants alongside Hong Kong and China. Another 23 central banks are observers.
Last year the UAE and China agreed to promote digital currency payments between the countries.
The Central Bank of UAE executed the mBridge transaction during the bank’s fiftieth anniversary celebrations. Coincidentally, it was also the eve of the first BRICS meeting following its expansion from five to ten member countries. The UAE joined at the start of the year. That’s symbolic given the BRICS members are keen to encourage local currency payments and less dependence on the dollar, something which the mBridge platform might help.
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