In a landmark achievement, the United Arab Emirates has successfully conducted its first government transaction using the Digital Dirham, marking a major milestone in its journey toward becoming a global digital finance leader. The transaction, completed on November 12, 2025, took less than two minutes, showcasing the speed and efficiency of the UAE’s emerging digital financial infrastructure.
Executed through the mBridge platform—a multi-central bank digital currency system—the pilot involved the Ministry of Finance and the Dubai Department of Finance. While the nature of the transaction was not disclosed, officials stated that it demonstrates the UAE’s readiness for fully digital, secure, and real-time government payments.
The Digital Dirham, issued by the Central Bank of the UAE, is a regulated central bank digital currency (CBDC) designed to enhance transparency, reduce costs, and streamline public services. Unlike cryptocurrencies, it is fully government-backed and plays a key role in the country’s Financial Infrastructure Transformation (FIT) Programme.
The initiative aligns with the UAE’s strict regulatory framework for digital assets. Since 2023, stablecoins in the country must be fully backed by high-quality liquid assets. Additionally, major Abu Dhabi institutions have been developing a dirham-backed stablecoin, highlighting strong national commitment to digital financial innovation.
This successful pilot opens the door for future use of the Digital Dirham in government salaries, subsidies, procurement, and eventually, retail payments. It promises faster fund transfers, automated auditing, and greater financial transparency—bringing the UAE closer to its vision of a fully digital economy.
