• The Central Bank of the United Arab Emirates (CBUAE) recently launched its Financial Infrastructure Transformation (FIT) program to support digital transformation and financial services.
• The FIT program includes nine initiatives, including the launch of a Central Bank Digital Currency (CBDC).
• The CBDC will facilitate both domestic and cross-border payments, while other initiatives such as an eKYC platform and a card domestic scheme will improve regulatory compliance, reduce operational costs, enhance customer experience, and strengthen security and operational resilience.
Central Bank of the United Arab Emirates Launches FIT Program
The Central Bank of the United Arab Emirates (CBUAE) has recently launched its Financial Infrastructure Transformation (FIT) program with a vision to promote digital transactions and make the UAE a leader in financial services. H.H. Sheikh Mansour bin Zayed Al Nahyan serves as Deputy Prime Minister and Minister of the Presidential Court, as well as Chairman of the CBUAE’s Board of Directors for this initiative.
Goals Of FIT Program
The goals of this program include making digital transactions more efficient while providing better customer experiences. It also aims to reduce operational costs, improve regulatory compliance, and strengthen security and operational resilience throughout financial services in the UAE. This large project is set to be fully integrated by 2026 with nine key initiatives divided into three stages.
Stage One Initiatives
Stage one consists of three major initiatives: launching a Central Bank Digital Currency (CBDC), setting up an electronic Know Your Customer (eKYC) platform, and establishing a card domestic scheme. The CBDC will help facilitate both domestic and cross-border payments by addressing current inefficiencies associated with them while driving innovation for local payments within the region.
Stage Two Initiatives
The second stage includes developing several digital infrastructures such as a financial cloud, an Instant Payments Platform,and an open finance platform which will increase customer satisfaction along with better security measures for all customers using these services within the UAE region.
The Governor of CBUAE stated that they are proud to be building an infrastructure that supports growth throughout their country’s economy through this transformative FIT Program which was inspired by their wise leadership’s visions towards digitization .