The United Arab Emirates and China Complete First Cross-Border CBDC Transaction
The United Arab Emirates and China have successfully conducted their first cross-border central bank digital currency (CBDC) transaction valued at $13.6 million. The transaction took place during the Central Bank of UAE’s 50th anniversary celebration in Abu Dhabi, marking the introduction of digital currencies in multilateral financial exchanges.
The event was attended by officials from both nations, including Vice President and Deputy Prime Minister of the UAE Mansour bin Zayed Al Nahyan and the Chinese Ambassador to the UAE Zhang Yiming. During the celebration, they initiated the cross-border payment and launched the m-CBDC Bridge, which facilitated real-time transactions.
Project mBridge for Multi-CBDC Cross-Border Transactions
Project mBridge is a multi-national digital currency platform initiated by the Bank for International Settlements. It aims to revolutionize cross-border transactions by enhancing efficiency. The founding central banks include Hong Kong Monetary Authority, Central Bank of the United Arab Emirates, Digital Currency Institute of the People’s Bank of China, and Bank of Thailand.
Digital Yuan Remittances Set for Expansion in Hong Kong
A collaboration between the Digital Currency Research Institute of the People’s Bank of China and the Hong Kong Monetary Authority is set to enhance the digital yuan’s cross-border capabilities. The pilot program, initiated in late 2020, has facilitated digital yuan exchanges and payments between Mainland China and Hong Kong. The next phase will involve more institutions in Hong Kong offering these services.
Efforts are also being made to simplify the process for Hong Kong residents to use digital yuan wallets and integrate digital yuan with Hong Kong’s payment systems. This expansion aims to improve transaction efficiency, expand merchant acceptance, and streamline cross-border e-commerce and educational payments.
Hot Take: UAE and China Pave the Way for Cross-Border CBDC Transactions
The successful cross-border CBDC transaction between the United Arab Emirates and China marks a significant milestone in the adoption of digital currencies. This collaboration demonstrates the potential of CBDCs to revolutionize international financial transactions and enhance efficiency. With projects like mBridge and ongoing efforts to expand digital yuan capabilities, we can expect to see more countries embracing CBDCs and exploring their cross-border applications. As the world moves towards a digital future, CBDCs have the potential to reshape the global financial landscape.
By
By
By
By