The UAE's Digital Dirham (CBDC) completed its first government-level transaction in less than two minutes.

Odaily reports that the UAE Ministry of Finance and the Dubai Treasury announced the completion of the first transaction during the pilot phase of the Digital Dirham central bank digital currency, marking the first major milestone since the project's launch in March this year. The transaction, executed through the government payment platform mBridge, signifies a crucial step forward for the UAE in applying its national digital currency to government and private sector operations.

Ahmed Ali Meftah, Executive Director of Central Accounting at the Dubai Treasury, said the transaction was designed to test the technical integration and operational readiness of the central bank system. The entire process took less than two minutes, validating the potential of the digital dirham to improve settlement efficiency and shorten intergovernmental payment cycles.

According to a policy document released by the Central Bank of the UAE in July, the issuance of the digital dirham will be rolled out in phases, initially for payment purposes only, to avoid competition with savings or interest-bearing products. This project is seen as a key measure by the UAE Central Bank to address the evolution of the monetary system in the digital economy era.

According to the Atlantic Council, only Nigeria, the Bahamas, and Jamaica have officially issued CBDCs, while 49 other countries are in the pilot phase. (Cointelegraph)