UAE new dirham symbol: When will the digital currency roll out, and what are its benefits?

Abu Dhabi: The UAE has unveiled a new symbol for its national currency, the Dirham, and announced major updates on the upcoming Digital Dirham. According to the UAE Central Bank (CBUAE), the government-backed digital currency is set to launch by the end of 2025.

The Central Bank of the UAE (CBUAE) introduced a fresh design for the Dirham to reflect stability and national pride. The digital version features a circle around the symbol in UAE flag colours, representing the country’s vision for a strong and innovative financial future.

The Central Bank Governor, Khaled Mohamed Balama, said the Digital Dirham “will enhance financial stability, fight financial crime, and boost international trade.”

He explained, “It is anticipated that the Digital Dirham as a blockchain-based platform with cutting-edge capabilities shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime.”

Balama said the launch of the digital currency will enable the development of innovative digital products, services, and new business models while reducing costs and increasing access to international markets.

With this move, the UAE strengthens its position as a global leader in digital payments, offering a more convenient and secure way to handle money.

Financial analysts are calling the introduction of a distinct digital Dirham symbol both timely and strategic. Armin Moradi, CEO and Co-Founder of Qashio said, “The new Dirham symbol reflects the UAE’s identity—where East meets West—and embodies the stability and innovative spirit of its financial ecosystem.”

Moradi explained, “This move comes as the UAE's fintech sector continues its strong growth, with local fintech startups raising $1.2 billion across 155 transactions in 2022. Additionally, the nation's banking sector remains robust, with banks' capital and reserves surpassing Dh500 billion for the first time in November 2024.”

He said these milestones underscore the UAE’s commitment to financial innovation and stability, positioning the Dirham as a key player in international markets.

The Digital Dirham will be a secure, cost-effective, and blockchain-powered version of the UAE’s physical currency. It will be accepted at all payment outlets alongside traditional cash.

“The digital symbol also signals a well-structured and progressive approach to monetary policy. As banks and financial institutions accelerate digital transformation, this new symbol provides a unified visual identity across banking, e-commerce, and fintech platforms, ensuring seamless integration into the evolving financial landscape,” added Moradi.  

The Central Bank also said it established a secure, integrated platform for issuing, circulating, and utilizing the digital Dirham wallet, including a dedicated digital Dirham wallet.

The wallet enables various financial transactions, such as retail, wholesale, cross-border payments, money transfers, withdrawals, top-ups, and redemptions for individuals and businesses. This system ensures a seamless and user-friendly experience, adhering to industry best practices and standards.