Digital Dirham: UAE Q4 2025 Rollout
Exciting news from the United Arab Emirates! Get ready for the digital dirham, the UAE’s central bank digital currency, which is slated to launch in the fourth quarter of 2025.
According to a report in the Khaleej Times, the Governor of the Central Bank of the UAE, Khaled Mohamed Balama, shared some insights. He reportedly mentioned that this blockchain-powered currency has the potential to bolster financial stability within the nation and play a role in the fight against financial crime. The report suggests that those in the retail sector can look forward to the digital dirham making its debut in the final months of 2025.
Balama is also quoted as saying that the digital dirham is expected to “further enable the development of innovative digital products, services, and new business models.” He highlighted its potential to cut costs and make access to international markets easier.
Good to know: whether you’re using digital or physical cash, both forms of the dirham will be accepted everywhere as payment.
And there’s a fresh look for the digital dirham! It’s been rebranded with a new symbol. The international symbol for ‘dirham’ will now be used, smartly combined with two horizontal lines inspired by the UAE flag. These lines represent the currency’s aim for stability.
Here’s the new symbol for UAE dirhams! Source: Khaleej Times
The road to digital dirhams in the UAE
Looking back, in June 2024, the CBUAE took a significant step by approving a licensing framework to regulate stablecoins. During a meeting in Abu Dhabi, UAE officials and the CBUAE board of directors discussed the government’s plans for financial infrastructure and gave the green light to this framework. These new regulations are all about clarifying how payment tokens that are backed by the UAE dirham will be issued, licensed, and supervised.
Soon after this framework was approved, stablecoin giant Tether announced their plans to launch a stablecoin pegged to the dirham, partnering with local experts Phoenix Group and Green Acorn Investments. Their goal is to create a digital version of the UAE dirham that is fully backed.
Following Tether’s announcement and the framework’s approval, other players jumped into the arena to create their own dirham-backed stablecoins. Fast forward to October 18, 2024, and AED Stablecoin received initial approval to issue a regulated stablecoin that’s pegged to the dirham right here in the UAE.
Then, on November 1st, The Open Network (TON) made an announcement: Tether’s dirham-pegged stablecoin will also be available on their blockchain network.
Related: Abu Dhabi’s financial free zone signs MoU with Chainlink for tokenization frameworks
Stablecoins in the UAE
It’s not just about dirham-backed stablecoins in the UAE! US dollar and euro stablecoins are also gaining popularity within the country.
For example, on February 24th, the Dubai Financial Services Authority – that’s the independent regulator for the Dubai International Financial Centre (DIFC) – recognized Circle’s USDC and EURC. These are the first stablecoins to be recognized under their crypto token rules.
Adding to the mix, a Ripple spokesperson previously mentioned to Cointelegraph that they are actively exploring the stablecoin landscape in the UAE and understanding the local requirements. They’re keeping a close eye on developments and pointed out that their RLUSD stablecoin is already available in the UAE.
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