First Government Transaction Using Digital Dirham Completed

The Ministry of Finance and Dubai Finance have completed the UAE’s first government financial transaction using the Digital Dirham, in collaboration with the Central Bank of the UAE. The milestone marks a key step in the pilot phase of the Digital Dirham project, part of the Financial Infrastructure Transformation Programme. The transaction, conducted between the Federal Government and the Government of Dubai, is intended to advance the use of digital payments across both government and private sector operations. The Digital Dirham is currently being developed and tested within a framework established by the Central Bank and local financial authorities. According to Dubai Finance, the pilot transaction was executed through the mBridge platform—a system that enables settlements using central bank digital currencies—to assess operational readiness and system integration with the Central Bank. The transaction was completed in under two minutes. Officials said the integration of the Digital Dirham with mBridge will enhance efficiency, transparency, and speed in payment flows across federal and local government entities by allowing payments to be issued, received, and settled digitally without intermediaries.