CBUAE Update on Digital Dirham CBDC Project (CBUA)
The Central Bank of the United Arab Emirates (CBUAE) outlined the development and planned implementation of its digital dirham central bank digital currency (CBDC). It will be designed for retail and wholesale transactions on a two-tier distribution model using distributed ledger technology (DLT). The digital dirham will be non-interest bearing with tiered holding limits to prevent banking sector disintermediation. The CBUAE has conducted pilots that tested innovative use cases including programmable social payments, tokenized asset ownership, and smart tourist wallets, while establishing the necessary legal framework through amendments to UAE banking law that recognize digital currency as legal tender. Pseudonymity will help safeguard privacy but include digital identity and know-your-customer (KYC) protocols and payment traceability to deter digital dirham’s misuse for illicit purposes. The CBUAE will introduce the digital dirham in phases over the next few years. Meanwhile, to support the CBUAE’s cross-border payment aspirations, the central bank continues to participate in mBridge experiments. [Read more at the CBUAE]
IMF launches pilot project to collect digital asset and currency data (IMF)
The IMF’s Statistics Department launched a pilot project to collect data on stablecoins, unbacked crypto assets and CBDCs as part of the G20 Data Gaps Initiative 3 (DGI-3). From July 15 to November 15, 2025, all G20 and Financial Stability Board (FSB) participating economies will use agreed templates and guidelines available here: G20 DGI Recommendations. This initiative contributes to measuring the impact of digital money and crypto assets on the economic and financial system. [Read more at the IMF]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.
