The Central Bank of the United Arab Emirates has announced that the Digital Dirham will be available for retail transactions starting in the last quarter of 2025.
A statement released on March 27 detailed that this digital currency will be accessible through regulated banks, fintech firms, exchange houses, and licensed financial institutions.
Once launched, the Digital Dirham will support functionalities like smart contracts and tokenization, which facilitate automated, secure, and sophisticated transactions, enhancing access to digital financial services.
The Governor of the Central Bank, Khaled Mohamed Balama, remarked:
“We expect that the Digital Dirham, leveraging a blockchain platform with advanced capabilities, will significantly bolster financial stability, inclusion, resilience, and the fight against financial crime. Additionally, it will promote the creation of innovative digital products, services, and new business models, while minimizing costs and broadening access to international markets.”
This initiative marks a major advancement in the UAE’s extensive digital transformation efforts.
Design of the Digital Dirham
The UAE has also unveiled new symbols for its national currency to align with its increasing emphasis on digital finance.
The updated symbol for the physical Dirham features a prominent capital “D” intersected by two horizontal lines, representing the nation’s vision for economic growth and stability. Drawing inspiration from the national flag, the design reinforces the UAE’s confidence in its financial trajectory. The digital version will have a circular frame in the colors of the UAE flag surrounding the “D” symbol.
This design aims to embody the country’s aspirations to excel in blockchain innovation and digital financial services.
Balama viewed the new branding as an indication of progress and a crucial element of the country’s digital strategy. He highlighted that the Digital Dirham would enhance financial resilience, inclusion, and regulatory oversight, while also facilitating the creation of new products and services.
This announcement follows the Central Bank’s recent participation in the Global Foreign Exchange Committee, where it became the first central bank in the Arab region to join this group, which advocates for transparency and integrity within global foreign exchange markets.