The Institute of Chartered Accountants in England and Wales (ICAEW) joins forces with the UAE Banks Federation (UBF), to help companies navigate the changing digital assets landscape. This initiative coincides with the UAE’s advanced pilot of a Central Bank Digital Currency (CBDC), which is designed to work alongside traditional physical currencies, offering a secure and efficient method of digital transactions. .
Hanadi Khalife, head of Middle East at ICAEW, commented, “The UAE is setting a global standard with its proactive adoption of CBDCs. Our partnership with the UAE Banks Federation is testament to our commitment to guiding this transformation. Accountants play a crucial role in ensuring organizational compliance and success in this new digital era.”
The announcement was made during a virtual event. Panels of experts explored the UAE digital currency landscape highlighting the potential of CBDCs in transforming bank operations.
One panelist, Jamal Saleh, director general of UAE Banks Federation, shared his view, “The UAE’s progressive approach to CBDCs and AI places it at the forefront of financial innovation. Embracing digital assets presents vast opportunities, but it also requires robust cybersecurity measures and interdepartmental collaboration. Through joint efforts, such as our work with ICAEW, and constant upskilling, companies can achieve secure and compliant integration of digital assets.”
However, they also highlighted the associated challenges with this digital shift. As digitization and AI adoption increase, so will the risk of cybercrime, necessitating robust security measures. With bad actors constantly innovating new ways to exploit vulnerabilities and steal sensitive financial data, the panel urged organizations to continuously improve their cybersecurity measures to protect against these growing threats.
Panelists also focused on the absence of a standardized accounting framework for digital assets, which can lead to inconsistencies in reporting, impacting investor confidence and potentially complicating regulatory compliance. Panelists encouraged organizations to proactively develop robust accounting practices and called for industry-wide collaboration to establish clear, consistent frameworks.
They emphasized the importance of seamless cooperation between IT, audit, and finance functions within organizations to effectively manage digital assets and ensure secure, compliant integration, as well as the need to strengthen capabilities and expertise among teams.
Discussions also highlighted the UAE’s significant global position, accounting for five to 10 per cent of global digital asset trading volume.
