UAE Digital Dirham Completes First Pilot Transaction

The United Arab Emirates has completed its first transaction using the Digital Dirham, its new central bank digital currency (CBDC). The milestone occurred as part of a pilot program led by the Central Bank of the UAE (CBUAE). According to Cointelegraph, the payment went through the multi-central bank platform mBridge, and it settled in under two minutes. This shows the UAE is moving quickly to modernize its payment system.

🇦🇪 LATEST: The UAE just completed its first digital dirham transaction under the CBDC pilot. pic.twitter.com/M06sYhve4w

— Cointelegraph (@Cointelegraph) November 12, 2025

Executing the Digital Dirham Pilot

The UAE’s Ministry of Finance and the Dubai Department of Finance worked with the CBUAE to conduct this first Digital Dirham payment. The pilot focused on government-level transactions rather than public use. Furthermore, by using the mBridge platform, the authorities were able to process the payment efficiently and safely.

This first transaction proves that the UAE’s digital currency infrastructure is functional. Also, it sets the stage for broader tests, including cross-border and retail applications in the future.

The Importance of the Pilot Transaction

This pilot transaction carries a lot of important implications:

• Faster payments: The Digital Dirham processed the payment in less than two minutes, much faster than traditional transfers.
  
• Building trust: Completing a real transaction shows that the system works and can handle live payments.
  
• Regional leadership: The UAE strengthens its position as a hub for fintech and blockchain innovation.
  
• Future digital economy: The pilot aligns with the UAE’s plans to expand its digital financial ecosystem.
  

Moreover, it sends a clear message to other countries in the region. Digital currencies backed by central banks are practical and can merge with existing financial systems.

Next Phase of the CBDC

Even though this is a significant milestone, the Digital Dirham is not yet available to the public. The pilot will gradually expand to include businesses, residents and cross-border transactions. Authorities will continue to test the technology, improve security measures and develop regulations for safe usage.

In the coming months, watch for partnerships with private sector companies. These could help provide digital wallets, scanning tools and user-friendly applications for businesses and individuals.

Impact on UAE’s Digital Economy

The UAE’s first Digital Dirham transaction marks an important step toward a fully digital economy. By successfully using the currency for real payments, the country shows that it is ready to innovate. While public use is still limited, this pilot demonstrates that digital money can work in practice. It also highlights the UAE’s commitment to becoming a leader in fintech and blockchain adoption.