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UAE Executes First Government Payment With Digital Dirham on mBridge

Legal tender status positions the CBDC for phased expansion through 2026.

Overview

  • The Ministry of Finance and Dubai’s Department of Finance completed the inaugural government transaction in Digital Dirhams in coordination with the Central Bank of the UAE.
  • Settlement was confirmed in under two minutes on mBridge, the multi‑CBDC platform co‑developed with partners including China, Hong Kong and Thailand.
  • Federal Decree Law No. 6 of 2025 recognises the dirham in digital form as legal tender, placing it on the same footing as notes and coins.
  • The Central Bank says pilots will extend into peer‑to‑peer, commercial and cross‑border use cases through 2026, with detailed implementation regulations still pending.
  • Launched under the Financial Infrastructure Transformation Programme, the project follows an intermediated, hybrid wallet model designed to boost efficiency, security and interoperability in payments.