UAE central bank partners R3 and G42 Cloud for CBDC implementation initiative
The central bank of the United Arab Emirates (CBUAE) has launched the first phase of its central bank digital currency (CBDC) implementation initiative, partnering with R3 and G42 Cloud to develop the technology and infrastructure.
The CBDC initiative, which forms part of the central bank’s Financial Infrastructure Transformation (FIT) programme, will look at a range of use cases across domestic and cross-border use.
The CBUAE believes a CBDC will enhance financial inclusion and strengthen the UAE’s payment infrastructure.
The central bank adds working with R3 will enable it to be ready for future tokenisation of financial and non-financial activities, in addition to the digitalisation of other financial services.
R3’s Corda – a permissioned distributed application platform – is designed for institutions operating in highly regulated environments and allows central banks to move digital currencies across network boundaries using exchange protocols that meet regulatory demands.
The CBDC initiative will begin with phase one which consists of three key areas of focus, including real-value cross-border CBDC transactions for international trade settlement, proof-of-concept work for bilateral CBDC bridges with India, and proof-of-concept work for domestic CBDC issuance covering wholesale and retail usage.