UAE plans to launch digital dirham this year to boost financial inclusion and fight crime

The Central Bank of the United Arab Emirates (CBUAE) said its Digital Dirham would launch for retail use in the final quarter of 2025.

According to a March 27 statement, the currency would be available through regulated banks, fintech companies, exchange houses, and licensed financial firms.

Once live, the Digital Dirham will support smart contracts and tokenization—features that enable automated, secure, and complex transactions while expanding access to digital financial tools.

CBUAE Governor Khaled Mohamed Balama said:

“It is anticipated that the Digital Dirham as a blockchain based platform with cutting edge capabilities shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime. It will further enable the development of innovative digital products, services, and new business models, while reducing cost and increasing access to international markets.”

This move represents a significant step forward in the UAE’s broader digital transformation strategy.

Digital Dirham design

The UAE has also introduced updated symbols for its national currency to align with its growing focus on digital finance.

The new symbol for the physical Dirham features a bold capital “D” crossed by two horizontal lines. These lines represent the country’s vision for economic stability and growth. The design takes cues from the national flag, reinforcing the UAE’s confidence in its financial future. For the digital version, a circular frame in the UAE flag’s colors surrounds the “D” symbol.

The design is intended to reflect the country’s ambition to lead in blockchain innovation and digital financial services.

Balama described the updated branding as a signal of progress and a key part of the country’s digital agenda. He emphasized that the Digital Dirham will improve financial resilience, inclusion, and regulatory oversight while enabling the development of new products and services.

Meanwhile, this announcement follows the CBUAE’s recent membership in the Global Foreign Exchange Committee. It is the first central bank in the Arab world to join the group, which promotes transparency and integrity in global FX markets.