The UAE conducts its inaugural cross-border digital Dirham transaction to China, totaling $13.6 million, overseen by Sheikh Mansour bin Zayed Al Nahyan, Chairman of the Board of Directors of the UAE Central Bank.

This transaction was facilitated through the mBridge platform, a collaborative initiative involving the BIS Innovation Hub and four founding central banks, including the Central Bank of the United Arab Emirates, the Hong Kong Monetary Authority, the Digital Currency Institute of the People’s Bank of China, and the Bank of Thailand, along with over twenty-five advisory members.

The program aims to revolutionize wholesale cross-border payments by implementing a common framework for multiple central bank digital currencies (multi-CBDC) based on distributed ledger technology.

Key objectives of the project include addressing inefficiencies such as price fluctuations, slow processing times, and transparency concerns, as well as tackling ongoing challenges related to maintaining currency dominance and financial stability across all participating jurisdictions.

This marks the first successful pilot initiative by an Abu Dhabi bank utilizing the Onyx blockchain developed by JPMorgan for cross-border transactions. Meanwhile, China has been actively advancing its e-CNY CBDC development, evidenced by the completion of initial cross-border oil transactions and precious metals settlements.

In contrast, in the United States, contenders for the presidency, including Robert F. Kennedy Jr., Donald Trump, and Ron DeSantis, have expressed opposition to CBDCs, with some even pledging to outlaw them if elected. Republican Ron DeSantis withdrew from the presidential race in early January.