The UAE has officially made the Digital Dirham a legal form of money, marking a major step in its push toward a fully digital financial system. A new federal law passed this week places the e-Dirham on the same level as cash, giving the Central Bank of the UAE the authority to issue and regulate it. The move is part of the country’s wider Digital Dirham Policy for 2025. To mark the launch, the government completed its first payment using the Digital Dirham, settling a cross-border transaction on the mBridge platform in less than two minutes.
Officials said the test showed clear gains in speed, cost, and security. Residents are expected to feel the impact later this year, when approved digital wallets will enable instant transfers and top-ups from bank accounts. The system is set to change how salaries, bills, and remittances are handled. Analysts say the UAE’s early adoption could strengthen its position as a regional fintech leader, with one user on X calling the development “sci-fi come to life.”
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