Dubai:
The United Arab Emirates will launch its very first digital currency by 2026, the central bank of the oil-wealthy Gulf state, which serves as the region’s economic hub, mentioned Monday.
Several central banks about the world have lately announced equivalent plans, though criticising decentralised cryptocurrencies like bitcoin.
The Emirates central bank mentioned its plans consist of “issuing a digital currency and driving digital transformation in the UAE’s financial services sector, by utilising the latest artificial intelligence and big data solutions.”
The announcement is aspect of its “2023-2026 strategy” which aims to “position it among the world’s top 10 central banks”, it mentioned according to state media.
In 2019, Saudi Arabia and the UAE announced a test phase of a widespread cryptocurrency for cross-border transactions.
The UAE has significant tech ambitions, investing in artificial intelligence, launching a space system, and hosting the regional headquarters of massive multinational digital firms.
Faced with growing recognition of the cryptocurrency bitcoin, as properly as for on line payments for the duration of the pandemic, central banks are exploring new units of their personal.
China launched the race in March with the get started of a test phase of its digital yuan.
The central banks of the United States, the European Union and England are also evaluating the possibility of launching their personal digital currencies, which are made to bring stability to a hugely speculative sector.
Created in 2008 as an option to conventional currencies, bitcoin is the world’s most common virtual unit.
But its price tag has slumped lately due to fresh moves from China to crack down on cryptocurrencies.
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