UAE's Digital Dirham CBDC Trial Records First Transaction

The United Arab Emirates has carried out its first transaction using the country’s upcoming central bank digital currency, the Digital Dirham, marking a major milestone in its CBDC roadmap. The UAE Ministry of Finance and Dubai Finance confirmed that the pilot transaction ran through the government payment platform mBridge as part of the ongoing testing phase.

Officials said the payment was the first of its kind for the UAE government and described it as a step towards broader adoption of the national digital currency across both public and private sector operations. It is also the first major update since the Central Bank of the UAE said in March that it planned to begin rolling out the Digital Dirham in the fourth quarter of 2025.

Ahmed Ali Meftah, executive director of central accounts at Dubai Finance, said the trial was designed to test operational readiness and technical integration with the central bank’s systems. The transaction was completed in under two minutes, highlighting the CBDC’s potential to speed up financial settlements between federal and local government entities.

In a policy paper released in July, the UAE central bank said the Digital Dirham aims to “future-proof” central bank money for the digital era and meet the needs of a rapidly evolving digital economy. The launch will be phased, with initial features restricted to payments so that the CBDC does not compete with savings products or other interest-bearing financial instruments.

Globally, CBDCs remain controversial, with critics warning of privacy risks and possible disruption to the banking system, while supporters argue they can make payments faster, cheaper and more inclusive. According to the Atlantic Council, only three CBDCs have fully launched so far in Nigeria, the Bahamas and Jamaica, while around 49 other countries are still testing digital currencies in pilot programs.