UAE Unveils New Dirham Symbol for Physical & Digital Currency

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The Central Bank of the UAE (CBUAE) has introduced a new symbol for the country’s currency, the dirham, to strengthen its role as a key player in the global financial market.

The new symbol was designed to reflect the dirham’s stability and also honor the UAE’s flag. The CBUAE also revealed a separate symbol for the digital version of the dirham.

In a statement on Thursday, the central bank explained, “The symbol is inspired by the English letter ‘D’ from the word ‘dirham.’ It includes two horizontal lines, symbolizing the stability of the UAE dirham and is influenced by the UAE flag, highlighting the country’s financial strength.”

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For the digital dirham, the symbol has a circle around the physical currency symbol. The colors of the UAE flag are used in this design to show pride and national identity.

Digital Dirham Launch Coming Soon

The CBUAE plans to launch the digital dirham, which is a central bank digital currency (CBDC), by the last quarter of this year. This will be available for retail use, meaning individuals will be able to use it for everyday transactions.

A CBDC is a digital version of a country’s official currency. It is different from cryptocurrencies because its value is set by the central bank and matches the value of the regular dirham.

Growing Interest in Digital Currencies

Central banks worldwide are exploring digital currencies as cryptocurrencies gain popularity with both individual and business investors.

Khaled Mohamed Balama, the governor of the CBUAE, expressed his excitement about the new symbols and the upcoming digital dirham. He said, “We are proud to reveal the new symbol for the UAE dirham in both physical and digital forms. This also includes the design of the digital dirham wallet. It marks a big step forward in the Digital Dirham programme and shows our commitment to financial progress.”

How to Use the Digital Dirham

Once launched, individuals and businesses will be able to get the digital dirham through licensed financial institutions. These include banks, exchange houses, finance companies, and financial technology (FinTech) companies.

The CBUAE has created a secure platform for issuing, circulating, and using the digital dirham. The digital dirham wallet will allow users to make a variety of financial transactions, such as:

• Retail and wholesale payments

• Cross-border transfers

• Money transfers and withdrawals

• Wallet top-ups and redemptions

Partnership for Smooth Implementation

To support this project, the CBUAE partnered with G42 Cloud from Abu Dhabi and R3, a digital finance service provider. G42 Cloud will provide the infrastructure, while R3 will handle the technology for the Digital Dirham programme.

The launch of the digital dirham is part of the Financial Infrastructure Transformation (FIT) programme, which the CBUAE started in 2023. This programme aims to improve the UAE’s financial system with advanced technology and secure digital services.