UAE Digital Dirham Completes First Pilot Transaction, Marking a Key Milestone

The UAE has successfully executed its first pilot transaction using the Digital Dirham, its central bank digital currency (CBDC), settling in under two minutes via the mBridge platform. This milestone underscores the country's strategic push to modernize its payment infrastructure and solidify its position in global fintech.

Government entities, including the Ministry of Finance and Dubai Department of Finance, participated in the pilot, focusing on public-sector payments. The mBridge platform's efficiency—enabling near-instant cross-border settlements—highlights the practical utility of the Digital Dirham for institutional and future retail adoption.

The initiative positions the UAE as a leader in CBDC innovation, with plans to expand into cross-border transactions and broader financial ecosystems. This development could accelerate regional blockchain integration and influence other Gulf states' digital currency strategies.