United Arab Emirates experiment and launch internal digital currency

The United Arab Emirates are the youngest country to join the race to experiment with a domestic digital currency. According to the three-year plan for 2023-2026, which announces the launch of its digital currency, the Central Bank of the United Arab Emirates (CBUAE) intends to be among the top 10 central banks in the world.

CBUAE’s strategy includes seven goals to advance the country’s digital transformation ambitions, which are primarily focused on financial services. Gulf News reported that This transformation is being heavily dictated by the latest versions of artificial intelligence and big data solutions.

While the UAE’s innovation strategy aims to streamline “inspection, surveillance and insurance systems” through technology, the government will use the UAE Passport, a digital identity system used to track citizens, “to strengthen financial inclusion and easy access to financial services.”

United Arab Emirates experiment and launch internal digital currency
United Arab Emirates experiment and launch internal digital currency

In line with its goal of global fintech disruption and the Vision 2021 Green Economy initiative, the UAE government intends to develop a secure cloud infrastructure for constant innovation. Gulf News also reported on the launch of a CBUAE-conducted survey called the Future Partner Needs and Expectations Survey, scheduled for July 15, 2021.

While many Gulf states have already signaled their willingness to experiment with digital technologies, the UAE is the first regulator to show interest on a fixed schedule.

As the cryptocurrency continues to gain public trust, Governments have become more aware of developments around the use of blockchain and digitization in their existing financial systems.

Earlier this month Vietnamese Prime Minister Phạm Minh Chánh shared his interest in testing a digital currency “as part of his broader e-government development strategy”. Contrary to this development, the Vietnamese government had previously banned the use of Bitcoin (BTC) for payments. However, citizens can still privately invest in BTC without waiting for regulatory scrutiny.

As Bitcoin’s presence in mainstream finance grows stronger by the day, governments around the world are re-evaluating the use case for Bitcoin and its direct impact on the political power shift.

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