Digital Dirham goes live: How UAE residents can pay and transfer
Full public rollout expected by the end of 2025 nationwide
DUBAI – The United Arab Emirates (UAE) has entered a new era in digital payments with the launch of the Digital Dirham.
The country recently recorded its first official transaction using the new digital currency, conducted between the Ministry of Finance and the Dubai Department of Finance.
This milestone signals the beginning of a system that aims to simplify payments, enable real-time settlements, and expand financial inclusion across the country.
UAE Digital Dirham
The Digital Dirham is designed to be accessible via mobile wallets and digital platforms, allowing residents to load funds, make purchases in stores, shop online, and transfer money to friends and family without needing a traditional bank account.
The full rollout is expected by the end of 2025.
How does it work?
The Central Bank of the UAE (CBUAE) has introduced the Digital Dirham as a fully digital version of the UAE’s national currency. It supports programmable payments, real-time settlement, and cross-border transfers. Payments can be made quickly and securely, with transactions recorded on a permissioned distributed ledger, combining account- and token-based features.
The currency will be accessible through hybrid wallets offered by banks, exchange houses, licensed fintech providers, and other authorised platforms. Users will be able to hold wallets with account identifiers, ensuring traceability while maintaining convenience.
When will it be available?
The UAE Central Bank is implementing the Digital Dirham in phases as part of the Financial Infrastructure Transformation Programme. The pilot phase has already been tested through the first government transaction, which was completed in under two minutes using the mBridge platform. The Digital Dirham is expected to be fully available to the public by the end of 2025.
What makes it different?
Unlike cash, the Digital Dirham is legal tender under Federal Decree Law No. (6) of 2025, putting it on par with physical Dirhams. This legal recognition opens the door for salaries, retail payments, and international remittances to be made in digital currency once operational rules are finalised.
Programmable payments, immediate settlement, and the potential for cross-border CBDC corridors make the Digital Dirham far more versatile than traditional cash. It is designed to enhance payment efficiency, strengthen monetary policy execution, and broaden financial inclusion by providing formal financial access to unbanked or underbanked individuals.