The Central Bank of the UAE has been actively exploring a Central Bank Digital Currency (CBDC). The "Digital Dirham" project is part of the CBUAE's Financial Infrastructure Transformation (FIT) programme launched in 2023. The initiative includes both wholesale CBDC (for interbank settlements) and retail CBDC (for public use). The UAE also participated in Project mBridge, a cross-border CBDC initiative with the central banks of China, Hong Kong, and Thailand, aimed at making international payments faster and cheaper. The Digital Dirham is expected to complement — not replace — physical cash.