The United Arab Emirates authorities plan to launch the digital dirham in the fourth quarter of 2025. This was announced by the Governor of the Central Bank of the UAE Khaled Mohamed Balama in an interview with Khaleej Times. According to him, the new blockchain-based digital currency will help improve financial stability and become an effective tool in the fight against financial crimes.
The digital dirham is expected to be used in the retail sector and will be available in all payment channels on par with physical currency. Balama also noted that the introduction of the digital dirham will contribute to the development of innovative financial products, reducing costs and increasing access to international markets. The new currency symbol will consist of the first letter and two horizontal lines symbolizing stability inspired by the UAE flag.
Earlier in 2024, the UAE Central Bank approved rules for stable coins pegged to the dirham. Following this, Tether and AED Stablecoin announced plans to issue corresponding tokens. International players, including Ripple and Circle, have also expressed interest in the market.
