UAE Unveils New Dirham Symbol, Launches Digital Currency Revolution

Editorial Team

Last updated 28-03-2025

4 min

The UAE Central Bank introduced a new symbol for the Emirati dirham, including its digital form.

The digital dirham project aims to revolutionise payment solutions and financial infrastructure in the UAE.

Digital dirhams, legally supported by a Federal Decree, must be accepted as legal tender.

The digital currency promises enhanced security, lower costs, and quicker transactions for businesses and individuals.

A secure platform for digital dirhams will integrate smoothly into retail and financial operations by late 2025.

In a move designed to boost the international standing of the Emirati dirham as a major financial player, today the Central Bank of the UAE unveiled a brand new symbol for the national currency—in both its traditonal cash and freshly minted digital forms.

This latest announcement forms part of ongoing efforts by the UAE to keep pace with a future-ready digital economy, reinforcing the nation's reputation as a global hub for financial technology and cross-border transactions. The UAE's leadership has emphasised the drive towards digitisation, with this latest step coming under the guidance of Sheikh Mansour bin Zayed Al Nahyan, UAE Vice President, Deputy Prime Minister, Minister of the Presidential Court, and Chairman of the country's Central Bank.

The Central Bank also shared promising news about their "Digital Dirham" project, a major initiative within the broader scheme of modernising the UAE’s financial infrastructure, originally launched back in 2023. This ambitious programme aims to establish the Emirates as a leader in financial technologies, paving the way for revolutionary payment solutions, streamlined transactions, and better efficiency across all sectors.

Crucially, the launch of this digital dirham isn't merely symbolic—it has a concrete legal foundation, backed specifically by Federal Decree-Law No. 54 of 2023. This decree revised several articles of the earlier Federal Law No. 14 from 2018, which focused on organising financial activities and regulating functions within the Central Bank. Essentially, this means digital dirhams must now be accepted as legal tender alongside traditional paper notes and coins throughout the Emirates.

From a technological perspective, the Digital Dirham boasts enhanced security features and greater privacy, offering significantly lower transaction costs and quicker payments. These new innovations in the realm of digital currency should encourage more convenient, cost-effective exchanges for both people and businesses across the UAE.

Acquiring digital dirhams won't require much effort either; individuals and companies can easily access them through authorised financial entities like banks, currency exchange shops, or fintech companies. The retail sector is scheduled to see the first issuance in the fourth quarter of 2025, promising a massive digital leap forward by year's end.

Design-wise, the newly debuted symbol retains elements of tradition, complemented with a subtle modern twist. Two horizontal lines, inspired by the UAE’s flag, make up the core structure, illustrating stability and global ambition. For the digital dirham variant specifically, a circular border framed in the national colours has been added, highlighting both Emirati pride and the nation's forward-thinking aspirations in finance.

To ensure seamless integration, the Central Bank rolled out a fully integrated and secure platform for the issuance, circulation, and use of digital dirhams. This system includes user-friendly digital wallets suitable for daily financial operations such as payments at retail outlets, wholesale sector transactions, remittances abroad, cash withdrawals, top-ups, and currency exchanges. Thanks to these features, the UAE is poised to emerge as a global powerhouse in digital payment services.

Khaled Mohamed Balama, Governor of the UAE Central Bank, spoke positively about the project, stating: "We are proud of the considerable progress we've made with the Digital Dirham initiative, culminating now in the release of our currency's new symbol. This marks a significant step forward in realising the Central Bank's vision." He went on to explain the practical benefits expected from the new blockchain-based digital currency, notably its role in ensuring financial stability, promoting financial inclusion, and bolstering the overall adaptability of the financial system—all while strictly complying with established standards against financial crime.

Perhaps it's not going too far to say this move is akin to adding a smart, modern spin on a comforting local favourite, like adding a dash of cardamom to a steaming cup of Emirati karak tea—familiar yet refreshingly innovative, setting the stage for a prosperous digital finance future.

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