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UAE unveils plan to power financial services with FIT program

Abu Dhabi Global Market Considers DLT Legal Framework Seeks Public Feedback on Proposals

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TL;DR

  • Dubai introduces CBDC to power its Financial Infrastructure Transformation (FIT) program.
  • Through the CBDC, Dubai wants to resolve the inefficiencies associated with international payments, as well as encourage innovation for domestic payment solutions.

The Central Bank of the United Arab Emirates (CBUAE) recently announced its Financial Infrastructure Transformation Program, which seeks to foster digital transactions and bolster the UAE’s status as a financial technology hub. To support this mission, they are launching their central bank digital currency for domestic and cross-border use.

The CBDC will provide an improved payment system by enabling fast, secure, and efficient payments between individuals and businesses around the world. With these changes in place, UAE citizens can look forward to increased convenience when it comes to making or receiving payments

To further propel the e-commerce sector and promote financial inclusion, the government is also launching a unified card payment platform and an instant payment system during the first stage of its program. By introducing these platforms, the country hopes to create a cashless society.

The FIT program comprises nine initiatives and will introduce several new projects in its initial phases, such as an e-Know Your Customer platform and a cutting-edge innovation hub. Beyond this first stage, additional initiatives will be added to transform the customer experience.

On February 7, Dubai’s official Virtual Asset Regulatory Authority (VARA) released the highly anticipated “Full Market Product Regulations,” which encompasses a vast range of guidelines for virtual asset activities. Shockingly, these laws explicitly prohibit the issuance and use of any form of anonymity-enhanced cryptocurrencies – also known as privacy coins – in addition to other related practices.

Multiple individuals from the UAE voiced their opinions concerning the regulation of privacy coins. Saqr Ereiqat, Crypto Oasis co-founder, noted that privacy coins are distinguishable from Bitcoin as they offer a unique challenge in enabling illicit activities or tracing transactions. However, he elucidated his remarks by expressing that these digital assets present novel difficulties due to their ability for anonymous usage and untraceable nature.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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