The Central Bank of the United Arab Emirates (UAE) has successfully executed its inaugural cross-border transaction using the digital dirham. This transaction, amounting to 50 million dirhams (approximately $13.6 million), was facilitated through the mBridge central bank digital currency (CBDC) platform, transferring the funds to China. This significant financial move was reported by Gulf News and was part of the golden jubilee celebrations marking the establishment of the UAE’s central bank, with Sheikh Mansour, the chairman of the bank’s board, overseeing the process.
mBridge, a collaborative project initiated in 2021, represents a collaborative effort by central monetary authorities from China, Hong Kong, Thailand, and the UAE, in partnership with the Bank for International Settlement (BIS).
The platform distinguishes itself by integrating multiple commercial banks from each participating country, collaborating on the development and enhancement of the necessary infrastructure and technology. mBridge leverages a single-platform, direct-access model, utilising the HotStuff+ consensus mechanism to enable real-time, peer-to-peer transactions. This approach allows for swifter transfers of national digital currencies between participating countries.