The Banking Executive Magaizne - March 2025 Issue

Central Bank of UAE CENTRAL BANK OF UAE UNVEILS NEW DIRHAM SYMBOL The Central Bank of the UAE (CBUAE) today unveiled the new symbol for the UAE's national cur- rency, the "Dirham", in a move that embodies the vision of the wise lead- ership, and the directives and ongo- ing support of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of the CBUAE, in strengthening the UAE's position as a leading global financial hub. The CBUAE also announced the progress of the Issuance and Circula- tion of the Digital Dirham, a key ini- tiative of the Financial Infrastructure Transformation (FIT) Programme launched by the CBUAE in 2023, aiming to bolster the UAE's position as a pioneer in Financial Market In- frastructure (FMI) and a destination for excellence in financial products innovation and digitalisation. The UAE's Digital Dirham is under- pinned by Federal Decree-Law No. (54) of 2023 amending certain provi- sions of Federal Decree-Law No. (14) of 2018 concerning the Central Bank and Regulation of Financial Institu- tions and Activities. This will ensure the acceptance of the Digital Dirham as a universal payment instrument (legal tender) in all payment outlets and channels alongside physical cur- rency. The unveiling of the new dirham symbol is in conjunction with the CBUAE’s recent joining to the FX Global Code, becoming the first cen- tral bank in the Arab region to do so, comes as part of the CBUAE’s efforts to establish the UAE Dirham as an international currency, along with enhancing the integrity and best practices in the exchange market of the national currency against foreign currencies and promoting ethical practices and sound professional rules for its participants. THE DIGITAL DIRHAM: TECHNOLOGICAL AND SECURITY ADVANTAGES The CBUAE issues the "Digital Dirham" as a digital version of the UAE's national currency, charac- terised by high levels of security and efficiency, contributing to reduced costs of payments through its re- liance on blockchain technology, which by its technical design insures effective risk management, data pro- tection/privacy, and atomic transac- tion completion. Individuals and businesses will be the BANKING EXECUTIVE 20 ISSUE 195 MARCH 2025