Hajra Naz
With the introduction of a new symbol for the Dirham, the Central Bank of the UAE (CBUAE) has taken strides in further establishing the financial identity of the UAE in the world. The new symbol is expected to be used in both the digital and physical representations of the Dirham and will enhance its modernity, stability, and security.
The Inspiration and Design of the New Symbol
The new symbol incorporates the English “D” with two horizontal lines marking financial stability, representing the Dirham. It has a strong sense of national identity because the colors of the flag of the UAE- green, white, red, and black– are used to symbolize pride and unity. Moreover, the design uses traditional Arabic calligraphy to instill a sense of power and grace.
The symbol is also enclosed in a circle on all digital platforms to represent security and the ever-evolving digital economy. The rounded design serves as a digital token, demonstrating the commitment the UAE has to digital transformation and financial innovation.
Strengthening the Dirham’s Global Position
The UAE government’s strategy to establish the Dirham as a widely recognized currency aligns with the recently unveiled emblem. The UAE recently demonstrated its dedication to moral behavior and openness in the foreign exchange markets by becoming the first Arab nation to sign the FX Global Code.
A Step Toward the Future with the Digital Dirham
With the new Dirham sign, the CBUAE has revealed plans for the Digital Dirham, a blockchain-based digital currency that will debut in late 2025. The goal of this project is to improve.
- Financial inclusion
- Security
- Efficiency.
Key Features of the Digital Dirham
- Legally Recognized Payment Method: The Digital Dirham will be a universal payment method alongside physical currency.
- Blockchain Technology: Ensures high security, privacy, and risk management.
- Cost Reduction: Enhances transaction speed while reducing financial costs for businesses and individuals.
- Tokenization: Enables fractional ownership of digital assets, expanding financial inclusivity.
- Smart Contracts: Facilitate automated financial transactions with instant settlements.
A Secure Digital Infrastructure
The CBUAE has developed an integrated and secure platform featuring a Digital Dirham wallet to support the adoption of the Digital Dirham. This platform will facilitate various types of transactions, including:
- Retail and wholesale payments
- Cross-border transactions
- Money transfers and withdrawals
- Top-ups and redemptions
The infrastructure is designed to be adaptable, allowing integration with future financial innovations as the UAE continues to expand its digital economy.
The Future of the UAE’s Financial Landscape
The governor of the CBUAE, Khaled Mohamed Balama, said.
Digital Dirham wallet and the new Dirham symbol represent a turning point in the financial industry of the United Arab Emirates.
He emphasized how blockchain technology will fight financial crimes and improve.
- Resilience
- Inclusivity
- Financial stability.
These developments further the UAE’s aim of a digitally empowered, future-ready economy and reinforce its position as a global leader in financial innovation.
