According to Bank officials, R3 and G42 Cloud will provide the technology and infrastructure required for Phase 1, with Clifford Chance offering critical legal oversight for the strategy.
The strategy establishes a framework for applying CBDC across various domestic and cross-border use cases in the region. UAE has launched nine CBDC-related initiatives as part of the CBUAE’s Financial Infrastructure Transformation (FIT) Programme.
Go deeper with GlobalData
The Programme is meant to explore ways to accelerate digital transformation within the Emirati finance sector.
David E. Rutter, CEO at R3, commented: “This is another landmark moment in bringing CBDCs even closer to production and issuance. CBDCs can strengthen our financial market infrastructure in several ways, including more efficient cross-border payments, faster settlement time periods, and streamlining multi-party processes. The CBUAE has made a significant step forward in realising these benefits
“We are honoured and excited that R3 has been selected to design and build CBUAE’s CBDC ecosystem in this innovative move towards building a more open, trusted, and enduring digital economy. We look forward to supporting the CBUAE in the next stage of its CBDC journey”, Rutter added.
Digital currencies and the future of electronic payments
Nations worldwide are taking incremental steps towards launching their CBDCs in the next decade. According to Atlantic Council, 11 countries have launched a CBDC, while 114 (or approximately 95% of the global GDP) are considering doing so.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn a March interview with RBI, Jack Fletcher – government relations manager of CBDCs at R3 – said digital payments are the driving force behind CBDC solutions, a process spurred by Covid and the rising success of e-commerce.
“People are using cash less and less – that’s a consumer choice. We could indeed queue in front of ATMs to take money out and make all our purchases in cash. But we are not doing that”, Fletcher explained.
In UAE’s case, launching a digital currency will address cross-border payment obstacles, enhance financial inclusion and strengthen the UAE’s payment infrastructure.
R3’s Corda – a distributed application platform – is designed to work in highly regulated environments, potentially serving as a launchpad for the issue and distribution of its digital currency.
G42 Cloud is an AI and cloud computing company founded in Abu Dhabi, UAE. Its CEO, Talal Al Kaissi, welcomed the collaboration with the Emirati Central Bank.
“We’re thrilled to be supporting the CBUAE (UAE’s Central Bank) in the development of its digital dirham”, Al Kaissi said. “This collaboration represents an important milestone in the digitalisation of the UAE’s monetary and payments framework and ensuring that the country remains at the forefront of financial services innovation.”
“As a company founded in the UAE, we have seen first-hand the country’s rapidly advancing status as a global fintech hub and are excited to be working with the CBUAE in leading its digital transformation. We look forward to working with the Central Bank and R3 to deliver a cutting-edge CBDC infrastructure that meets the highest standards of efficiency, security, and innovation”, he concluded.
