UAE Expects to Launch CBDC in 2025

The United Arab Emirates plans to launch its digital dirham central bank digital currency (CBDC) in the fourth quarter of 2025.

According to the Khaleej Times, Central Bank of the UAE Governor Khaled Mohamed Balama reportedly stated that the blockchain-powered currency could enhance financial stability and assist in fighting financial crime.

The report indicates that the retail sector can expect the digital dirham’s release by the end of 2025.

“It [digital dirham] will further enable the development of innovative digital products, services, and new business models while reducing cost and increasing access to international markets,” Balama reportedly said.

The report also mentions that both the digital and physical versions of the dirham will be accepted across all payment channels.

This update comes alongside a rebrand for the digital dirham.

Its new symbol includes the first letter of the dirham and two horizontal lines, representing stability and drawing inspiration from the UAE flag.

In June 2024, the Central Bank of the UAE approved a licensing framework for regulating stablecoins.

During a board meeting in Abu Dhabi, officials reviewed the financial infrastructure program and approved rules that define the issuance, licensing, and supervision of payment tokens backed by the UAE dirham.

Following this development, Tether announced plans to launch a dirham-backed stablecoin through a partnership with local firms Phoenix Group and Green Acorn Investments.

The collaboration aims to create a fully-backed digital version of the UAE dirham.

Other players have also entered the space.

On October 18, 2024, AED Stablecoin received in-principle approval to issue a regulated dirham-pegged stablecoin within the UAE.

On November 1, The Open Network (TON) revealed that Tether’s dirham-backed stablecoin would be launched on its blockchain.

In addition to dirham-backed stablecoins, both U.S. dollar and euro-pegged stablecoins have been gaining traction in the UAE.

On February 24, the Dubai Financial Services Authority—regulator for the Dubai International Financial Centre (DIFC)—recognized Circle’s USDC and EURC as the first stablecoins approved under its crypto token regime.

A Ripple spokesperson previously told Cointelegraph that the company is assessing the UAE’s stablecoin regulations.

The spokesperson confirmed that Ripple is monitoring the situation closely and that its RLUSD stablecoin is currently available in the UAE.

Sources:

https://cointelegraph.com/news/uae-digital-dirham-fourth-quarter-2025

https://www.khaleejtimes.com/business/uae-new-dirham-symbol-new-banknotes-digital-currency