UAE in Pursuit of its Own Digital Currency
Sophia Cruz • 1 min read
To be able to keep up with virtual innovation, many banks have been eyeing CBDC as an essential element for the progress of their financial ecosystem. The latest bank to join the hype is the central bank of the UAE. The United Arab Emirates is promoting its own digital currency, in order to upgrade and digitize its financial institutions, since they aim to become one of the global top ten banks that offers CBDC.
The strategy is to virtualize all financial sectors on monitoring, records, insurance and inspection systems. This will also focus on cross-border payments, to save on transaction fees. Artificial intelligence and virtual solutions will contribute more to this strategy, as they seem fit for the future.
The UAE is the first country in Western Asia to process its own digital currency. This has inspired other countries; for example Vietnam – the Prime Minister has announced that they will also consider piloting their own CBDC. Countries and governments worldwide have been considering the use of cryptocurrencies, and their benefits to their economy. CBDC will uphold the value and participation in global trade in the future, therefore, the Middle East will play a big part in the implementation of CBDC, due to its oil that powers the world.