UAE Completes First Government Transaction Using Digital Dirham
- UAE completes first government payment using the Digital Dirham via the mBridge platform.
- mBridge enables fast, secure, and transparent transactions across government entities.
- Officials say Digital Dirham adoption strengthens the UAE’s finance and global fintech leadership.
The United Arab Emirates has completed its first government transaction via the Digital Dirham. The payment builds on earlier cross-border tests that sent Dh50 million to China using the same blockchain-based system. The accomplishment, according to officials, demonstrates growing confidence in the adoption of digital currency.
The Ministry of Finance and the Dubai Department of Finance carried out the transaction with support from the Central Bank of the UAE. The event marks the start of domestic use for the Digital Dirham. It connects federal and local financial systems under a single digital payments framework.
The Central Bank said the transaction demonstrates real progress under its Financial Infrastructure Transformation Programme. The initiative promotes digital payments, financial inclusion, and innovation in government finance. It also aims to strengthen the UAE’s position as a global fintech leader.
Earlier, the UAE completed its first international transfer using the same digital currency. The Dh50 million cross-border payment was processed through the mBridge platform. It involved the People’s Bank of China, the Hong Kong Monetary Authority, and the Bank of Thailand. The pilot proved that central bank digital currencies can settle payments securely and instantly across borders.
Inside the mBridge Platform
The mBridge platform supports multiple central bank digital currencies. It was developed and implemented by the Central Bank of the UAE. It allows government entities to settle payments securely and reliably using central bank-issued digital money.
Fully integrated with the UAE’s Digital Dirham system, it provides a unified channel for issuing, receiving, and settling payments. The system operates without intermediaries, reducing cost and improving accuracy.
The platform speeds up settlements, strengthens transparency, and improves accountability in government finances. Officials said these features enhance operational efficiency and support the UAE’s digital transformation.
Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at the Dubai Department of Finance, said the test verified technical readiness. He said the transaction took less than two minutes to complete. The short processing time showed the platform’s efficiency and coordination across systems.
Related: JPMorgan and DBS Lead Push for Cross-Chain Tokenized Deposits
National Leaders Applaud the Milestone
Sheikh Mansour bin Zayed Al Nahyan, Vice President and Chairman of the Central Bank, called the Digital Dirham a key pillar of the UAE’s digital economy. He said the transaction shows strong financial integration and advanced national infrastructure.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Prime Minister and Minister of Finance, said the Digital Dirham improves efficiency in public finance. He noted that the move aligns with the UAE’s vision for an advanced and trusted digital economy.
Mohammed Hadi Al Husseini, Minister of State for Financial Affairs, said the pilot reflects a new era for public finance. He said it will help accelerate the UAE’s transition toward a digital, data-driven economy.
Central Bank Governor Khaled Mohamed Balama said the pilot is a milestone in national digital transformation. He noted that it strengthens financial stability and innovation. He said the Central Bank will continue to develop advanced payment systems that match global standards.
The Digital Dirham initiative now moves closer to full adoption. Officials expect wider use across government entities and private institutions. The system’s ability to connect traditional finance with blockchain infrastructure places the UAE among global leaders in financial innovation.
