mBridge, a CBDC platform created through an international partnership, has enabled the first cross-border transfer of the digital dirham, marking history for the crypto space in the UAE.
Local news reports in the UAE have confirmed the cross-border transfer of the digital dirham. The transfer happened through the mBridge CBDC platform, made through an international collaboration. Meanwhile, Sheikh Mansour bin Zayed bin Sultan Al Nahyan, the Vice President and Deputy Prime Minister, spoke at the inauguration of the transfer.
The transfer occurred at the golden jubilee celebrations of the UAE’s central bank. On the other hand, 50 million dirhams were sent to China through the mBridge CBDC platform. It amounted to around $13.6 million, creating a significant milestone for digital currency cross-border transactions.
The UAE government had described the digital dirham’s role earlier on its official portal. It said, “As part of the UAE’s digital transformation, CBDC will address the obstructions of domestic and cross-border payments, enhance financial inclusion and the move towards a cashless society.” Further, the government had also mentioned the potential of digital currency in strengthening the country’s payment infrastructure.
Sheikh Mansour spoke extensively on the role of the UAE central bank in making the country a global financial hub. Moreover, the mBridge platform is a collaborative effort. It includes the UAE Central Bank and other regulators in China, Hong Kong, Thailand, and the Bank for International Settlements . It saw its creation in 2021.
In 2023, Abu Dhabi and Hong Kong endorsed working together to promote CBDC adoption. Both had focused on cross-border settlements, furthering the need for CBDC adoption. The latest cross-border transfer from the UAE to China is likely the result of years of collaborative efforts. Besides, the CBDC platform has actively aided the entire cycle of the project.
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