The UAE is planning to release a CBDC to encourage electronic payments.

The issuance of a digital version of the UAE's dirham is part of the Financial Infrastructure Transformation Program, which was unveiled on Sunday and includes nine different initiatives.

According to an official statement, the first phase of the project includes the development of a variety of digital payment services, including a CBDC that can be used both domestically and for cross-border transactions. This means that the tokens can be used to make payments both within the UAE and abroad.

CBDCs are becoming increasingly popular globally as a way to improve payment systems and the banking sector, and the Bank of England recently announced its own plan to create a digital pound.

While the topic of digital currencies can spark debates about their potential benefits or drawbacks, it is clear that this trend is rapidly spreading around the world.