The Central Bank of the United Arab Emirates hosted a just concluded conference with the theme “Future of Finance”. The relevant financial stakeholders of the Emirates were present at the conference where the speakers and panelists tried to discuss the topic and how UAE can key into it.
The Minister of State who also doubles as the Chairman of Abu Dhabi Global Market, in the person of Ahmed Ali Al Sayegh, aired his view in this regard as he dwelled more on the role of centralized finance from the standpoint of blockchain technology.
In his address, he quipped that Central Bank Digital Currencies (CBDCs) will go a long way in shaping and customizing the future of finance. He premised this on the fact that DeFi is disrupting the financial ecosystem, and governments have to leverage CBDCs as well.
While expounding on his arguments, Minister Ahmed Ali drew the attention of the attendees to how CBDC can act as a catalyst in ensuring a cashless society in the Emirates. Such that the citizens can travel or move about without necessarily bearing or dealing with fiat currencies.
The Minister mentioned that issuing Central Bank Digital Currency will also enhance cross-border payments so the UAE citizens can safely make international transactions.
Having said that, the financial regulators of each nation are getting more concerned about the power of CBDC. This has made some of them intensify research. Recall that the Central Bank of Turkey and Nigeria have set up research teams respectively.
Read more: UAE To Have A CBDC Between 2023-2026.