ABU DHABI, UAE—The Central Bank of the UAE has launched its Central Bank Digital Currency (CBDC) Implementation Strategy.
For Phase 1, R3 and G42 Cloud have been selected as the technology and infrastructure providers of the initiative, according to The Paypers.
The strategy, which represents one of nine initiatives in the CBUAE’s Financial Infrastructure Transformation (FIT) Program, sets out a roadmap for applying CBDC across a range of domestic and cross-border use-cases in the region, The Paypers reported.
According to the report, the first phase of the strategy, which is expected to take place over the next 12 to 15 months, comprises three primary pillars. These include initiating real-value cross-border CBDC transactions for international trade settlement, proof-of-concept work for bilateral CBDC bridges with India, and finally, proof-of-concept work for domestic CBDC issuance covering wholesale and retail usage.
Addressing ‘Pain Points’
“As part of the CBUAE’s digital transformation program, the implementation of the CBDC strategy will aim to address the pain points of cross-border payments, enhance financial inclusion, and further strengthen the UAE's payment infrastructure,” the Paypers said. “The technological support of R3 will enable CBUAE to ensure the readiness of the UAE for the potential future tokenization of financial and non-financial activities, in addition to the digitalization of other financial services.”
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