The UAE Central Bank achieved a significant milestone on January 29 by executing its first cross-border digital dirham transfer of 50 million dirhams ($13.6 million) to China using the mBridge platform, marking a new era in digital currency transactions .
On January 29, the Central Bank of the United Arab Emirates (UAE) took an important step in the field of digital currencies by conducting its first cross-border digital dirham transfer. The transfer, amounting to 50 million dirhams (equivalent to $13.6 million), was sent to China using the mBridge Central Bank Digital Currency (CBDC) platform.
The transfer was overseen by Sheikh Mansour, Chairman of the Board of the Central Bank of the UAE, during the golden jubilee celebrations of the bank’s establishment. This event is not only an important milestone for the UAE, but also a notable step in the global advancement of digital currencies.
The Aimbridge platform, introduced in 2021, is a collaborative effort between the central monetary authorities of China, Hong Kong, Thailand and the UAE, in partnership with the Bank for International Settlements (BIS). It stands out as the only international cooperative partnership that also includes China. The first pilot of Project Aimbridge was completed in September 2022, and since then, it has involved multiple commercial banks from each participating country to develop its infrastructure and technology.
Aimbridge uses a single-platform, direct-access architecture employing the HotStuff+ consensus mechanism to facilitate real-time, peer-to-peer transactions. This innovative approach allows for the rapid transfer of each participating country’s national digital currency, demonstrating the potential of CBDCs to streamline cross-border payments.
The use of blockchain and distributed ledger technology for digital currencies has gained significant interest around the world. According to BIS report, about 90% Central bank The possibility of adopting CBDC globally is being explored. Of these, 11 countries have already launched CBDCs, 15 countries are in the pilot stage and 26 countries are in the development stage. This trend indicates growing acceptance of the potential benefits and efficiencies that CBDCs can bring to the global financial system.
The success of the UAE’s digital dirham transfers through Aimbridge highlights the growing integration of blockchain technology into national and international finance, potentially reshaping the future of money transfers and economic transactions globally.
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