CBUAE Unveils New Symbol for the UAE Dirham and Advances Digital Currency Initiative

The Central Bank of the UAE (CBUAE) has unveiled a new symbol for the UAE’s national currency, the Dirham, in a move that reflects the vision of the country’s wise leadership and the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the CBUAE Board. This initiative reinforces the UAE’s position as a leading global financial hub.

In parallel, the CBUAE announced key developments in the issuance and circulation of the Digital Dirham, a central component of the Financial Infrastructure Transformation (FIT) Programme launched in 2023. The Digital Dirham aims to position the UAE at the forefront of Financial Market Infrastructure (FMI) innovation and excellence in digital financial products.

Backed by Federal Decree-Law No. (54) of 2023, which amends key provisions of Federal Decree-Law No. (14) of 2018 concerning the Central Bank and the regulation of financial institutions and activities, the Digital Dirham will be legally recognized as a universal payment instrument (legal tender) alongside physical currency, accepted across all payment platforms and channels.

The unveiling of the new Dirham symbol coincides with the CBUAE’s recent accession to the FX Global Code, making it the first central bank in the Arab region to do so. This step underlines the UAE’s efforts to establish the Dirham as an international currency and promote ethical standards and best practices in the foreign exchange market.

Digital Dirham: Advanced Technology and Security

The Digital Dirham, issued by the CBUAE, is a secure digital version of the UAE's national currency, leveraging blockchain technology to offer high efficiency, lower transaction costs, enhanced privacy, and robust risk management. Its architecture ensures atomic transaction completion and data protection.

Individuals and businesses will be able to access the Digital Dirham through licensed financial institutions such as banks, exchange houses, finance companies, and fintech firms, depending on activated use cases. Retail issuance is expected in the last quarter of 2025.

Key features of the Digital Dirham include:

• Tokenisation: Facilitates digital asset fractionalisation, expands access to liquidity, and enhances financial inclusion and operational efficiency.

• Smart Contracts: Enables the automated execution and instant settlement of complex, multi-party transactions involving predefined conditions.

New Currency Symbol

The newly announced Dirham symbol, used for both physical and digital currency, draws inspiration from the English name "Dirham." It incorporates two horizontal lines that represent the stability of the currency, reflecting elements of the UAE flag. The Digital Dirham symbol is distinguished by a surrounding circle and the national flag’s colours, symbolising pride, identity, and the nation's forward-looking financial vision.

This design reflects the UAE’s ambition for global financial integration and highlights its commitment to building a modern, innovative, and internationally competitive financial ecosystem.

Integrated Digital Platform and Wallet

To support the rollout of the Digital Dirham, the CBUAE has developed a secure and integrated platform that includes a user-friendly Digital Dirham wallet for both individuals and businesses. This wallet supports a range of financial transactions, including:

• Retail, wholesale, and cross-border payments

• Money transfers and withdrawals

• Top-ups and redemptions

The system ensures a seamless and efficient user experience aligned with international best practices. It is also built to integrate new financial innovations that cater to emerging use cases driven by the rapid digitalisation of the UAE economy.

This contributes to the UAE’s goal of developing a resilient and flexible financial system, enhancing its competitiveness as a global financial and digital payments leader.

H.E. Khaled Mohamed Balama, Governor of the CBUAE, stated:

“We are proud to unveil the new symbol for the UAE Dirham in both physical and digital forms, as well as the design of the Digital Dirham wallet. This marks a major milestone in the implementation of the Digital Dirham programme and aligns with the Central Bank’s strategic vision.”

He added:

“The Digital Dirham, as a blockchain-based platform with cutting-edge capabilities, will enhance financial stability, inclusion, and resilience, while helping to combat financial crime. It will also drive innovation in digital products and services, reduce costs, and expand access to global markets.”