**UAE Completes First Government Payment Using Digital Dirham in Under Two Minutes**
The United Arab Emirates has successfully completed its first government payment using the Digital Dirham, the nation’s central bank digital currency (CBDC). This landmark transaction, carried out by the Ministry of Finance and the Dubai Department of Finance, marks a significant step towards integrating digital currencies into national financial operations.
The payment was completed in under two minutes, demonstrating the efficiency and speed of the new system and showcasing the potential of the Digital Dirham.
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### Key Milestone for the Digital Dirham Initiative
This payment represents a critical moment in the UAE’s Digital Dirham initiative, which is a core part of the country’s broader Financial Infrastructure Transformation Programme. The UAE Central Bank (CBUAE) has developed the mBridge platform to facilitate government payments using CBDCs.
The operation successfully connected the Dubai Department of Finance and federal authorities through a new technical infrastructure that eliminates the need for intermediaries, streamlining the payment process and enhancing security.
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### Proven Capabilities in International Payments
Prior to this achievement, the UAE had tested the Digital Dirham in international operations. In January 2024, the country conducted a cross-border payment of Dh50 million to China, serving as a test for the CBDC’s capabilities in secure, immediate international settlements. These tests validated that CBDCs can be used for cross-border payments without intermediaries, offering a glimpse into the future of digital payment systems.
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### Streamlined Government Payments
The mBridge system enabled the UAE to complete the latest government payment both smoothly and rapidly. Settlements executed without intermediaries helped ensure that transactions remain secure and efficient.
Ahmed Ali Meftah, Executive Director of the Central Accounts Sector at the Dubai Department of Finance, confirmed the operation’s success, noting that the transaction was completed seamlessly in less than two minutes.
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### Supporting Financial Modernization
The Digital Dirham initiative is a key part of the UAE’s ongoing effort to modernize its financial infrastructure and improve government payments. By leveraging advanced digital currency technology, the UAE continues to position itself at the forefront of financial innovation, offering faster, safer, and more efficient payment solutions for both domestic and international transactions.
https://blockonomi.com/uae-makes-first-cbdc-payment-with-digital-dirham-via-mbridge-system/