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UAE Executes First Government Payment With Digital Dirham on mBridge

The pilot confirms system integration across federal and Dubai finance bodies, pointing to a 2026 scale-up.

Overview

  • The Ministry of Finance and Dubai’s Department of Finance completed the transaction with Central Bank support under the FIT Programme.
  • The payment settled in under two minutes via the mBridge multi‑CBDC platform, demonstrating intermediary‑free settlement.
  • Officials described the operation as an operational readiness test centered on government and interbank use at this stage.
  • The Central Bank says the Digital Dirham is a retail CBDC pegged 1:1 to AED, with expansion to peer‑to‑peer, commercial, and cross‑border use through 2026 toward a full launch late next year.
  • Regulators are preparing stablecoin and digital‑asset frameworks, with existing rules requiring fully backed, audited dirham‑linked stablecoins.