The Central Bank of the UAE (CBUAE), along with the Ministry of Finance and the Dubai Department of Finance (DOF), has completed the UAE’s first government‐to‐government payment using the Digital Dirham, Emirates news agency WAM reported. The digital dirham was introduced as the nation’s central bank digital currency (CBDC). The transaction was executed on 11 November 2025 via the multi-CBDC settlement platform mBridge and reportedly settled in less than two minutes.
This marks a key step in the pilot phase of the Digital Dirham initiative, launched by the UAE Central Bank as part of its Financial Infrastructure Transformation (FIT) Programme, in partnership with domestic financial regulators. The transaction was informed by the UAE’s earlier cross-border payment test transaction, when the Digital Dirham was used to transfer AED 50 million to China via mBridge in a prior phase.
Broader rollout coming soon?
The purpose of the Digital Dirham is to accelerate the adoption of digital payments, enhance efficiency, and strengthen the UAE’s financial ecosystem. With a successful pilot, government payments can move faster, with fewer intermediaries. This also opens the doors to a broader rollout, where private-sector use, retail wallets and cross-border CBDC bridges can be accessed.
H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Minister of Finance, emphasized that the adoption of the Digital Dirham for government transactions showcases the Ministry’s dedication to driving digital innovation in public financial management.
Regulation of digital currencies and stablecoins is evolving in parallel, positioning the Digital Dirham as part of a new payments architecture in the UAE, positioning it as a global hub for financial innovation.