UAE Conducts First Government Transaction Using Digital Dirham via mBridge Platform

The United Arab Emirates has marked a significant milestone in its financial infrastructure with the execution of its first government-to-government transaction using the Digital Dirham. The Central Bank of the UAE confirmed the successful pilot, which was processed through the multi-CBDC settlement platform mBridge, completing in under two minutes.

This initiative, part of the Central Bank's Financial Infrastructure Transformation (FIT) program, underscores the country's readiness for large-scale adoption of central bank digital currencies. The Digital Dirham enables instant settlements between federal and local entities, reducing costs and enhancing transparency by eliminating intermediaries.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum highlighted the transaction as a definitive step toward a cashless economy. The MOVE aligns with broader global trends in digital finance, where governments and institutions are increasingly leveraging blockchain technology for efficient, real-time settlements.