Kazakhstan to cooperate with UAE on CBDCs and crypto regulations

Kazakhstan to cooperate with UAE on CBDCs and crypto regulations

The visit of the National Bank of Kazakhstan to the UAE will lead to exploration of cross border initiatives, collaboration with ADGM and DIFC on digital assets, and learnings from Dubai’s Virtual Asset Regulatory Authority on developing bespoke regulations for digital assets. This comes as the UAE Central Bank launched its digital dirham CBDC which will be available for retail users at the end of 2025.

These comments were made by Binur Zhalenov, Chief Digital Officer of the National Bank of Kazakhstan in a LinkedIn post as he noted that the delegation’s visit was a productive one.

In an official press release, the National Bank of Kazakhstan noted that on March 26-27, the delegation of the National Bank of Kazakhstan and the Agency of Kazakhstan for Regulation and Development of Financial Market (ARDFM) made a visit to the United Arab Emirates (UAE).

During the visit, meetings were held with H.E. Khaled Mohamed Balama, Governor of the Central Bank of the UAE; H.E. Waleed Saeed Abdul Salam Al Awadhi, CEO of the UAE Securities and Commodities Authority; H.E. Ghannam Butti Al Mazrouei, Chairman of the Abu Dhabi Securities Exchange; management of the Mubadala sovereign investment fund, administration of the UAE international financial centers, banking and fintech companies.

In the course of the meeting with the Central Bank of the UAE parties exchanged views on macroeconomic conditions, as well as experiences in financial flows management and digital financial assets regulation. Following the meeting, a Memorandum of Understanding was signed aimed at exchanging best practices in the development of financial markets and FinTech, ensuring cybersecurity, and promoting CBDCs.

An exchange of experiences on the digital financial assets regulation and the development of blockchain technologies took place with the management of the Virtual Assets Regulatory Authority of the UAE.

In cooperation with the AIFC management, a meeting was held with the administrations of Abu Dhabi Global Market (ADGM) and Dubai Financial Centre Authority (DFSA) to discuss approaches to the regulation of the UAE’s international financial centers, as well as the conduct of transactions and mutual settlements within the jurisdictions of these centers.

Following the meeting with the Abu Dhabi Securities Exchange, the parties noted the importance of developing infrastructure in the capital markets and increasing the liquidity of trading products in the exchange market.

In addition, meetings were held with the Mubadala investment holding and First Abu Dhabi Bank on the prospects of expanding investment partnership with Kazakhstan, as well as with regional offices of leading international companies BCG and Microsoft on the creation of infrastructure for the proactive development of AI in the financial market of Kazakhstan.

Crypto Regulations in Kazakhstan

Kazakhstan currently mandates that all crypto transactions occur through the Astana International Financial Center (AIFC), where regulated platforms such as Binance and Bybit operate. However, many transactions still take place outside this framework. More recently Azat Peruaşev, leader of the minority Aq Jol party and member of the Majilis, the lower house of the Kazakhstan parliament, proposed that the country’s central bank and private banks collaborate to create a “crypto bank” to provide a legal platform for operations with cryptocurrencies. Another MP, Ekaterina Smyshlyaeva, proposed legislative reform of digital asset regulations at the same time.

Peruaşev said 90% of crypto operations in Kazakhstan are currently carried out in a legal gray zone. That enables scams, illicit activities, and tax evasion.

The country through the Kazakhstan’s Financial Monitoring Agency (FMA)also recently shut down 36 illegal crypto exchanges, seizing $4.8M in assets to combat money laundering. Authorities blocked 3,500 unlicensed platforms, returning $545K to victims and freezing $120K in assets. Additionally Kazakhstan plans to launch its Digital Tenge CBDC by 2025 integrating it with global payment platforms.

All this comes as Kazakhstan has put laws into place to encourage cryptocurrency miners to establish operations there. Kazakhstan currently produces around 6.17% of the world’s cryptocurrency mining, placing it among the top four nations in the world along with China, the US, and Russia.

Central Bank of UAE launches Dirham CBDC with new symbol

Central Bank of UAE launches Dirham CBDC with new symbol

The Central Bank of UAE (CBUAE) unveiling its new symbol for the UAE’s national currency, the Dirham has committed to the launch of the Digital Dirham as a CBDC. The CBDC project launched in 2023 has witnessed huge progress and will incorporate a Digital Dirham wallet. As per the press release, it seems that the Digital Dirham is already being used for B2B purposes and will be issued for retail segment in fourth quarter of 2025.

As per the press release the new Dirham Symbol and Digital Dirham will strengthen UAE’s positions as a leading global financial hub. The Digital Dirham was a key initiative the Financial Infrastructure Transformation (FIT) Program and was incorporated by Federal Decree-Law No. (54) of 2023 amending certain provisions of Federal Decree-Law No. (14) of 2018 concerning the Central Bank and Regulation of Financial Institutions and Activities which considers the Digital Dirham as a legal tender in all payment outlets and channels alongside the physical currency.

H.E. Khaled Mohamed Balama, Governor of the Central Bank of UAE, said, “We are proud to unveil today the new symbol for the UAE’s national currency the “Dirham” in both its physical and digital forms, and the design of the Digital Dirham wallet. This reflects the significant advancements in the implementation of the Digital Dirham program and a leap towards realizing the CBUAE’s vision.”

UAE Digital Dirham CBDC Benefits

Built on Blockchain technology, the CBDC will incorporate high levels of security and efficiency and will be used for tokenization purposes as well as payments on smart contracts for complex transactions.

Banks, financial institutions, exchange houses, finance companies and fintech companies will issue the Digital Dirham CBDC to both individuals and businesses.

The Central Bank of UAE has also developed an integrated and secure platform for the issuance, circulation, and use of the Digital Dirham, the Digital Dirham wallet. The wallet will enable a number of financial transactions, including retail, wholesale, and cross-border payments, money transfers and withdrawals, top-ups, and redemption of the Digital Dirham when needed. This ensures a seamless and convenient user experience, in line with industry best standards and practices.

Balama also explained that the Blockchain based Digital Dirham will enhance financial stability, inclusion, resilience, and combatting financial crime. He also noted that it would further enable the development of innovative digital products, services, and new business models, while reducing cost and increasing access to international markets.

The Dirham Symbol both in physical and digital format

As for the new Symbol it will be applied for both the physical form of the currency and the digital form. The letter was chosen, derived from the English name of the Dirham, to serve as an international symbol representing the nation’s currency, incorporating two horizontal lines that embody the stability of the UAE Dirham and inspired by the UAE flag, to enhance financial and monetary stability.

On the other hand, the Digital Dirham symbol features a circle surrounding the physical currency symbol, using the colors of the UAE flag to reflect pride and national identity. The symbol choice serves as evidence of the national currency’s global reach and openness to a more prosperous future, and commitment to developing an innovative local financial ecosystem with a global perspective.

Paul Kayrouz, Chief Fintech Officer at Central Bank of UAE, noted in a Linkedin post, that the launch is a new era for Fintech in the UAE. He stated, ” We unveiled the new symbol for the UAE Dirham (AED), a major step in strengthening the currency’s digital and global presence. This symbol will streamline financial transactions, enhance recognition in international markets, and support the UAE’s vision as a global fintech and financial hub.”

UAE had previously also issued regulations for AED backed stablecoins that would also be used as legal tender in the country. With the launch of the Digital Dirham, the UAE becomes the fourth country to have launched a CBDC out of 134 countries who are either researching, piloting, canceling or have inactive CBDCs.

The announcement comes as nearly a third of central banks have pushed back launching digital versions of their currencies, a new survey Official Monetary and Financial Institutions Forum (OMFIF) think tank and German-based banknote firm Giesecke+Devrient  showed in February 2025, although a desire to protect their money-minting powers mean most still intend to go ahead.

U.S. President Donald Trump banned work on a digital dollar in one of his first moves after becoming president in January.

Lebanon wont get USAID if its not on the blockchain

Lebanon wont get USAID if its not on the blockchain

As the United States President Donald Trump overhauls USAID with a new name as well as a proposed integration with Blockchain, Lebanon whose USAID funds were semi frozen might need to integrate Blockchain into its digitization strategy if it wants to be able to get USAID in the future.

President Donald Trump in a recent speech at the Digital Asset Summit in New York, plans to restructure USAID and rebrand it as U.S. International Humanitarian Assistant placing it under the Secretary of State’s authority.

This is in line with Elon Musk’s call to put the U.S. Treasury department on the blockchain as well, considering it would create efficiency and help to decrease costs in government. His view is that the transparency and immutability of the blockchain technology, which ensures all transactions are visible for everyone to see for the rest of time, would eradicate alleged fraud.

Blockchain to be incorporated into USAID


As per a memo circulating among State Department staff, Trump wants to integrate blockchain technology into USAID’s procurement system to enhance security, transparency, and traceability in aid distributions.


It would leverage a blockchain to trace aid distributions and enforce payment models based on outcomes rather than inputs. “All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability,” the memo reportedly reads, adding that such an approach would encourage innovation and efficiency.


The President also reportedly wants cryptocurrency and blockchain technology to feature heavily in its operations. USAID has been under scrutiny from the Trump administration since the establishment of the Department of Government Efficiency (DOGE), led by Elon Musk.

Lebanese USAID grants semi frozen

The U.S. president froze USAID payments in a January 20th under an executive order. The freezing also effected Lebanon which in 2024 alone received a total of $219 million in assistance from USAID of those $17 million came from the U.S. State Department with military aid accounting for 4% of the total funding and with remaining funds primarily supported humanitarian relief ($91 million) and education ($71 million).


The news of the freeze has had a negative effect on NGOs and their employees in Lebanon even though it was temporarily lifted in February 2025.


There are two major issues that will challenge Lebanon’s ability to received USAID, the first is level of historic corruption in Lebanese government and even claims of corruption within the NGO community, as well as lack of transparency, while the second is the lack of a digital infrastructure that can integrate Blockchain, AI, and other technologies such as digital payments into the web of aid or investment funds to the country.
If USAID will utilize blockchain and crypto, it will need to add the entities that funds are provided with to the blockchain as nodes to be able to track where money has been spent and if it has been spent correctly leading to results.

New Lebanese Cabinet under Salam discusses digital transformation

The new Lebanese Cabinet, under Prime Minister Nawaf Salam is discussing digital transformation in the public sector, after enacting the first Ministry of AI in Lebanese government.
As per news reports, a committee will be formed to oversee coordination between Lebanese Ministries, even though the digitization theme has been in discussion for years. Several previous sessions addressed this issue, dating back to the government’s adoption of the Lebanon Digital Transformation Strategy 2020-2030.


Lebanon’s Prime Minister Nawaf Salam emphasized the government’s commitment to establishing a neutral, transparent, and efficient state administration as a cornerstone of governance. He stressed that “there is no state without an administration,” as it serves as the backbone of governance and a key tool for serving citizens.
He announced that the government formed a ministerial committee to study and modernize the public sector, along with another committee to examine digital transformation in public administration.


Lebanon still has one of the most outdated governmental services sector, where almost everything needs paperwork and in person visits.


Despite this, some ministries have taken independent steps to integrate technology into their services. In 2021, the Ministry of Labor launched an online platform for work permit applications for foreign nationals. The Interior Ministry introduced an electronic criminal record service, allowing citizens to request and receive documents through OMT centers across Lebanon. The Ministry of Justice has also advanced its digital services, enabling lawyers and citizens to create online accounts on the official judicial services platform for easier access to information and remote application submissions. Most recently, the Ministry of Economy introduced an online licensing system for market and exhibition organizers in Lebanon.


Yet all these are remnants of what other governments in the region and globally were doing in the early 2000s. Previous discussions on a CBDC launch and regulation of crypto have never seen the light.

Lebanese Ministry of Health dabbles with Blockchain


The only Ministry that has dabbled with Blockchain has been the Lebanese Ministry of Health which launched MediTrack back in December 2021. The first phase was used to track medicine for Cancer and chronic illness patients whose treatment is costly. Twenty hospitals from across Lebanon attended the training at Rafic Harriri International Hospital.

Minister Abyad in a statement at the time,” The MediTrack Solution will first be utilized for medicine related to high cost treatments such as cancer and other chronic diseases. It is essential in tracing the movement of medicine and will decrease the effects of the financial crisis that Lebanon is going through because it will stop the smuggling of medicine across the border as well as stop the storage and monopolization of these medicines ensuring it gets to the patient and only the patient.”


The Minister noted that this was carried with support of World Health Organization and European Union. In September of 2021, The Lebanese Ministry of Public Health signed a five year agreement with rfxcel, part of Antares Vision Group a solution provider in digital supply chain traceability solutions, to provide a Blockchain enabled GS1-compliant traceability hub to protect the entire pharmaceutical supply chain in the country. The Blockchain enabled solution will be implemented by rfxcel’s partner Medical Value Chain (MVC), the Bahrain subsidiary of US-based AVC Global. MVC

The Future of Lebanon will depend on Blockchain, AI, and datacenters


Future of Lebanon depends on receiving investments from around the globe and the region, and for this to happen, the Lebanese government has to show not only an appetite for reforms, but also a platform that brings transparency and trust. Once again Blockchain, AI, datacenters, become the only relevant solution to bureaucracy corruption and favoritism.


Smart contracts, public access to information on the blockchain, digital asset payments either in CBDCs or stablecoins will eliminate the waste, bureaucracy and corruption that has crippled the Lebanese state for decades, as well as restore trust and confidence in the political and governmental operation of the country.

Anything less than that will not be accepted as the United States and countries in the GCC and Arab world embrace blockchain, AI, digital assets, and the future.

Moroccan Central Bank says crypto regulations in adoption phase

Moroccan Central Bank says crypto regulations in adoption phase

The Moroccan Central Bank’s governor Abdellatif Jouahri announced on November 26th that the digital asset/crypto regulation law has been prepared and is in the adoption phase.


The Moroccan Central Bank also known as Bank Al Maghrib worked on its crypto and digital asset’s regulation alongside the World Bank and IMF (International Monetary Fund).


Despite the lack of crypto regulations in Morocco, it is one of the fastest growing crypto markets both globally and in the MENA region. As Per Chainalysis’ Geography of Cryptocurrency report for the Middle East and North Africa (MENA) region in 2024, Morocco ranked 20th worldwide for crypto adoption. In addition, Morocco received the highest crypto transaction value of MENA’s African bloc comparing it to Algeria, Egypt, Libya, Morocco and Tunisia.


The report for 2024 noted, “MENA includes two countries ranked in the top 30 of the global crypto adoption indexes: Türkiye (11th) and Morocco (27th), capturing $137 billion and $12.7 billion of value received, respectively.”
The announcement was made during the High-Level Regional Symposium on Financial Stability.


Jouahri noted, “Bank Al-Maghrib has prepared, with the participation of all stakeholders and with the support of the World Bank, a draft law governing crypto assets which is currently in the adoption process.”


He also mentioned that work in CBDCs ( Central Bank Digital Currencies) and the work the Moroccan government is doing in this domain especially as CBDCs can increase financial inclusion.


He added, “We launched the MDBC project more than three years ago with the aim of anticipating and guiding the strategic choices and decisions of Bank Al-Maghrib in this area. The project also aims to strengthen our capacities and expertise on this complex and multidimensional subject.


The Central Bank of Morocco considers this a long-term undertaking, and has impact on the monetary policy and financial stability.
Earlier this year, Morocco announced its Moroccan digital 2030 strategy to continue $10.35 billion to GDP. As per the strategy, the country seeks to create 240,000 jobs in the digital sector by 2030, which it expects will contribute 100 billion dirhams ($10.36 billion dollars) to the country’s gross domestic product while increasing digital export revenues to 40 billion dirhams ($4.15 billion).
The Moroccan Agency for Digital Development (ADD) will play a central role in supporting the digitalization of public administrations according to the head of the government, while a unified digital portal will standardize administrative procedures across various stages.

R3 DLT instrumental in UAE’s RAKBANK CBDC cross border transaction

R3 DLT instrumental in UAE’s RAKBANK CBDC cross border transaction

R3 announced on LinkedIn that it was thrilled about the success of UAE RAKBANK  in their first cross border CBDC transaction using mBridge in which R3’s issuance layer technology solution played an instrumental role.

David E Rutter, CEO of R3 said: “The first cross-border CBDC transaction by a UAE local bank, RAKBANK, is a groundbreaking development for the UAE, and the region more broadly.

He added, “R3’s issuance layer technology and CBDC integration solutions have been instrumental in supporting RAKBANK to achieve this exciting milestone in production. R3’s ambition is to continue to deliver interoperable distributed ledger solutions, using Corda, our open, permissioned tokenization platform to the UAE and beyond.”

Rutter adds that R3 is committed to working with UAE domestic banks like R3 to build their digital ecosystem.

The National Bank of Ras Al Khaimah (“RAKBANK”) recently became one of the first banks in the United Arab Emirates to execute an international remittance using mbridge CBDC. The Bank utilized China’s digital Yuan (eCNY) in exchange for the Digital Dirham, the UAE’s CBDC.

Vikas Suri, Co-Head of Wholesale Banking Group at RAKBANK, added, “The successful transfer of eCNY to our correspondent in China is a game-changer in several respects. It’s one of the first UAE-led foreign currency transfers executed in local currencies without involving a third currency to China and without using conventional payment rails. This is a gamechanger that paves the way for instant blockchain based CBDC exchanges with payment versus payment, fundamentally altering how we approach international payments. Our next steps will focus on supporting the China and UAE business corridor for our clients, by leveraging mBridge to reduce costs and improve the speed of remittances.”

In an IMF blog, the International Monetary Fund noted that almost two-thirds of countries in the Middle East and Central Asia are exploring adopting a central bank digital currency with Bahrain, Saudi Arabia and UAE in the more advanced proof of concept stages. The countries in MENA and Central Asia are studying CBDCs as a way to promote financial inclusion and improve the efficiency of cross-border payments.

The IMF Blog noted however that CBDCs require careful consideration, with each weighing their own unique set of circumstances.

Many of the 19 countries currently exploring a CBDC are at the research stage. Bahrain, Georgia, Saudi Arabia, and the United Arab Emirates have moved to the more advanced “proof-of-concept” stage. Kazakhstan is the most advanced after two pilot programs for the digital tenge.

RAKBANK executes international remittance using CBDC

RAKBANK executes international remittance using CBDC

The National Bank of Ras Al Khaimah (“RAKBANK”) has become one of the first banks in the United Arab Emirates to execute an international remittance using mbridge CBDC. The Bank utilized China’s digital Yuan (eCNY) in exchange for the Digital Dirham, the UAE’s CBDC.

Project mBridge is an ambitious initiative aimed at addressing inefficiencies in cross-border payments, such as high costs, slow processing times, and operational complexities. Launched in 2021, it is a collaborative effort between the Central Bank of the United Arab Emirates (CBUAE), the BIS Innovation Hub, the Bank of Thailand, the Digital Currency Institute of the People’s Bank of China, and the Hong Kong Monetary Authority.

The core of mBridge is a multi-central bank digital currency platform, built on distributed ledger technology (DLT). This platform allows participating central and commercial banks to conduct real-time, peer-to-peer cross-border payments and foreign exchange transactions. The mBridge Ledger, a new blockchain, underpins the platform, supporting secure and instantaneous transactions.

Raheel Ahmed, Group CEO of RAKBANK, commented: “The participation of RAKBANK in the mBridge platform and the execution of our first-ever central bank digital currency international payment highlight RAKBANK’s cutting-edge digital capabilities. This milestone reflects our commitment to breaking boundaries and solidifying our position as a leading retail and commercial bank in the UAE, with a rapidly expanding international payments arm”.

Vikas Suri, Co-Head of Wholesale Banking Group at RAKBANK, added, “The successful transfer of eCNY to our correspondent in China is a game-changer in several respects. It’s one of the first UAE-led foreign currency transfers executed in local currencies without involving a third currency to China and without using conventional payment rails. This is a gamechanger that paves the way for instant blockchain based CBDC exchanges with payment versus payment, fundamentally altering how we approach international payments. Our next steps will focus on supporting the China and UAE business corridor for our clients, by leveraging mBridge to reduce costs and improve the speed of remittances.”

In August RAKBANK partnered with Bitpanda Technology Solutions, a leading digital assets infrastructure provider, to provide a robust platform that will enable UAE residents to effortlessly manage digital assets, subject to UAE Central Bank approval.

Saudi Central Bank works with IMF on cost benefit analysis of wholesale CBDCs

Saudi Central Bank works with IMF on cost benefit analysis of wholesale CBDCs

The IMF (International Monetary Fund) has noted in its recent country report issued on Saudi Arabia: 2024 Article IV Consultation-Press Release; and Staff Report, that the Saudi Central Bank is conducting a cost-benefit analysis of wholesale CBDCs (Central Bank Digital Currencies) in consultation with local banks and a team of IMF experts.

In the report which commends Saudi Arabia for improvement in various areas, the IMF discusses the exploration of Central Bank Digital Currencies by SAMA.

As per the report, “SAMA is exploring the application of a Central Bank Digital Currency (CBDC). It has joined project Aber with the UAE in 2019 to explore digital ledger technology and more recently, the cross-border CBDC project known as M-bridge.”

The report adds, SAMA has also been conducting a cost-benefit analysis of CBDCs, in consultation with local banks and a team of IMF experts. Considerations have so far focused on wholesale transactions.”

The IMF report notes that IMF staff supports SAMA’s cautious approach as it explores the complex requirements and risks to monetary and financial stability relating to the regulatory, technological, or other aspects of CBDCs.

IMF notes two thirds of countries in MENA exploring CBDCs

This is not the first time that the IMF discusses CBDC projects in KSA and in the MENA region. In June the International Monetary Fund noted that almost two-thirds of countries in the Middle East and Central Asia are exploring adopting a central bank digital currency with Bahrain, Saudi Arabia and UAE in the more advanced proof of concept stages. The countries in MENA and Central Asia are studying CBDCs as a way to promote financial inclusion and improve the efficiency of cross-border payments.

The IMF blog noted however that CBDCs require careful consideration, with each weighing their own unique set of circumstances.

Saudi Arabia is working on CBDC project mBridge

Saudi Arabia has been working on CBDC implementation project for over three years. Earlier this year, as the BIS (Bank for International Settlements) announced that it had reached a minimum viable product stage, Saleh Algrayan, AI Advisor at Bank for International Settlements and an employee of Saudi Central Bank, announced that Saudi Central Bank had now joined mBridge. Saudi Arabia’s Central Bank becomes the second Arab central bank to join after the UAE Central Bank.

In 2023, at WEF, and during the World Economic Forum’s session Financial Institutions innovating under pressure’ The Saudi Minister of Finance Mohammed al-Jadaan stated that while CBDCs have privacy issues they are a fantastic tool in developing countries

In collaboration with Dubai’s virtual asset regulator, VARA, the 10th P2P Financial systems workshop

In collaboration with Dubai’s virtual asset regulator, VARA, the 10th P2P Financial systems workshop

In collaboration with Dubai’s virtual asset regulatory authority ( VARA), The DLT Science Foundation will host the 10th P2P Financial Systems International Workshop (P2PFISY 2024). This premier international event will convene global industry leaders, regulators and academics to explore the future of finance and the pivotal role of decentralized technologies including discussions on CBDCs, tokenization, DeFi, and more.


The workshop will take place on October 16-17, 2024 coinciding with the Future Blockchain Summit and GITEX happening in Dubai.
Previous editions have been hosted by institutions such as the Federal Reserve, Deutsche Bundesbank, Bank of Italy, and the European Central Bank, with support from other prominent central banks including the Bank of England, Bank of Canada, and De Nederlandsche Bank.


The 10th anniversary edition of P2PFISY will feature a two-day program packed with keynote speeches, panel discussions, and presentations from leading experts in the field. The workshop will delve into critical topics such as:

  1. National Sovereignty and Currency Neutrality
  2. Stablecoins & Security Tokens
  3. Central Bank Digital Currencies
  4. Real World Asset Tokenization in the Financial Landscape and Real Estate Tokenization
  5. Sustainable Finance and ESG Integration
  6. Consumer Protection in the face of Generative AI
  7. Financial Inclusion
    Academics may submit their research through the Workshop’s Call for Papers.
    “We are thrilled to be partnering with Virtual Assets Regulatory Authority (VARA) to host the 10th P2PFISY,” said Dr. Paolo Tasca, co-founder and chairman of the DLT Science Foundation. “Dubai has clearly positioned itself at the forefront of crypto adoption in the past few years. Since its inception, I have had the pleasure to liaise with VARA, and experienced first-hand their foresight and expertise. We believe this workshop will provide a valuable platform to learn from their experience and will facilitate crucial conversations at the cutting edge of financial technology”.

Matthew White, CEO of VARA said, “We are honored to have supported bringing the 10th P2P Financial Systems International Workshop to Dubai. This is a testament to our commitment to foster innovation and collaboration in the digital finance sector. This event marks a significant milestone, celebrating a decade of pioneering research and discussions that have helped to shape the future of finance. At VARA, we are dedicated to creating a robust and innovate regulatory environment that supports the growth and integration of decentralized technologies. We look forward to engaging with global leaders, academics, and industry experts to continue driving the evolution of P2P financial systems”

Charles Adkins, President of Hedera, commented, “Dubai has cemented its status as a leading financial and technology hub through its forward-thinking approach to virtual assets, exemplified by the establishment of VARA. This event will unite global leaders in decentralized technologies, promoting both learning and collaboration within this rapidly evolving industry.”

Central Bank of UAE and Seychelles cross border settlement’s MOU will extend to CBDCs

Central Bank of UAE and Seychelles cross border settlement’s MOU will extend to CBDCs

The Central Bank of UAE, and the Central Bank of Seychelles have signed two MOUs (Memorandum of Understanding), to utilize local currencies in settling cross border financial and commercial transactions, with the aim of extending this to CBDCs (Central Bank Digital Currencies).

As per the press release, His Excellency Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), and Ms. Caroline Abel, Governor of the Central Bank of Seychelles (CBS), signed today in Abu Dhabi two Memorandums of Understanding (MoU) regarding enhancing the use of local currencies in settling cross-border financial and commercial transactions, and interlinking payment and messaging systems between the two countries.

The first MoU aims to establish a framework to promote the use of local currencies in settling bilateral commercial transactions, developing the exchange market and to facilitate bilateral trade and direct investment, remittance settlement, and financial market development.

Under the second MoU, both parties will consolidate cooperation and mutual benefit from the services of instant payment platforms, electronic switches and messaging systems, by directly linking them in accordance with the regulatory requirements in the two countries.

This includes interlinking the Instant Payments Platform (IPP), which the CBUAE is developing within the Financial Infrastructure Transformation Program, and the similar platform in the Republic of Seychelles, and between systems and electronic switches to facilitate mutual acceptance of local cards and processing their transactions, in addition to exploring the possibility of linking messaging systems and cooperation in the field of FinTech and Central Bank Digital Currencies.

His Excellency Khaled Mohamed Balama, Governor of the CBUAE, commented, “The signing of the Memorandums of Understanding reflects the Central Bank’s keenness to expand its relations with regional and international counterparts, to enhance UAE’s economic and commercial partnerships globally. The use of the two countries’ currencies for cross-border financial and commercial transactions reflects the growing trade, investment, and financial cooperation and contributes to reducing costs and saving time in settling transactions. This helps in developing the foreign exchange market in the UAE dirham and the Seychellois rupee, leading to enhancing trade exchanges, investments, and remittance between the two countries”.

Ms. Caroline Abel, Governor of the CBS, added “For small open island economies like Seychelles, the importance of an effective and efficient financial system to facilitate trade cannot be overemphasised. The agreement to develop and gradually implement the necessary framework to promote the use of our respective national currencies, the UAE Dirhams and the Seychelles Rupees, in cross-border transactions can further facilitate trade relations between stakeholders across the two jurisdictions. With the Central Bank of Seychelles spearheading efforts to modernise and develop the Seychelles national payment system, in line with the Government’s digital economy agenda, the opportunity to collaborate on interlinking our payment and messaging systems will facilitate the processing and settlement of cross-border financial transactions between the two countries. We look forward to learning from the experiences and expertise of the Central Bank of the UAE as we endeavour to keep pace with developments within the global payment landscape and further leverage technology and innovation for more seamless processing and settlement of payments, including cross-border payments.” 

This comes a day after, the CBUAE and the Central Bank of Indonesia signed an MOU to establish a framework to enhance bilateral cooperation in the area of payment systems.

 His Excellency Khaled Mohamed Balama, Governor of the CBUAE, said: “This MoU embodies the growing economic partnership between the UAE and Indonesia. It is an important pillar which seeks to support bilateral relations in the fields of trade and investment and enhance the UAE’s role in global trade. Today, we are presented with an important opportunity to bolster our cooperation with Bank Indonesia across all financial and banking fields, including financial technology, innovation, and digital payments. This reinforces our wider efforts to support the UAE’s objective of becoming a leading global hub for financial technology and digital and cross-border payment solutions.”

The Central Bank of UAE commences domestic CBDC payments phase

The Central Bank of UAE commences domestic CBDC payments phase

The Central Bank of the UAE (CBUAE)is planning for phase two implementation for domestic CBDC payments after the Central Bank with the Bank for International Settlements Innovation Hub Hong Kong Centre, the Hong Kong Monetary Authority, the Bank of Thailand, and the Digital Currency Institute of the People’s Bank of China, launched the Minimum Viable Product (MVP) platform of the mBridge project. Mbridge is a multi-central bank digital currency (CBDC) common platform for wholesale cross-border payments and settlement.

CBUAE is planning for Phase 2 implementation, which includes domestic CBDC payments and further enhancements of cross-border fund transfers.

The CBUAE anticipates the growing use of the mBridge platform for cross-border payments among the participating jurisdictions. Ongoing reviews and enhancements are also underway as the platform progresses towards a full production launch. This is the first multi-CBDC platform which has reached the MVP phase, ready for use by early adopters.

In January 2024, His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court and Chairman of the Board of the CBUAE, initiated the first cross-border payment of ‘Digital Dirham’, the CBUAE’s CBDC, to China worth AED50 million through mBridge. It also marked the first real-value cross-border CBDC payment between a MENA country and a country outside the region on an MVP-ready platform.

To date, a number of UAE licensed financial institutions (LFIs) have been onboarded onto the mBridge platform, with collaborative efforts underway for to accelerate its adoption. Onboarded LFIs are now ready to initiate and process cross-border CBDC payments with their counterparts of the participating jurisdictions.

According to the Central Bank of UAE press release, the mBridge platform is a key initiative under the CBUAE’s Financial Infrastructure Transformation (FIT) programme which seeks to accelerate the digital transformation of the UAE’s financial services sector. The deployment, testing and launch of the mBridge MVP comes as part of the CBUAE’s Phase 1 implementation of its broader CBDC strategy, supported by the use of the Digital Dirham.

Presently, the CBUAE is planning for Phase 2 implementation, which includes domestic CBDC payments and further enhancements of cross-border fund transfers. Utilizing distributed ledger technology, the mBridge project aims to connect economies through a multi-CBDC platform to help support international trade and cooperation, whilst overcoming challenges of existing cross-border payment systems and offering efficient, low-cost, and instant cross-border payments settled in central bank money.

Khaled Mohamed Balama, Governor of the CBUAE, said, “The CBUAE’s participation in mBridge aligns with our strategic objectives of promoting innovation, efficiency, and financial inclusion in the financial services sector. By collaborating with our international partners, we aim to contribute to the development of a more robust, efficient, economical, interconnected and instant global payments infrastructure that benefits all participants, while maintaining the highest security standards.”

A few days prior to this announcement, the Central Bank of UAE approved the issuance of a regulation for licensing and overseeing stablecoins and a series of policies aimed at supporting the banking, insurance, and financial services sectors.