China and UAE Praise Potential Role of CBDCs in Cross-Border Trade

China and the United Arab Emirates (UAE) have acknowledged the crucial role of central bank digital currency (CBDC) in facilitating cross-border trade and investment. In a joint statement, the two countries expressed their commitment to deepening bilateral and multilateral cooperation with respect to their CBDCs. China also expressed appreciation for the UAE’s recent direct cross-border payment transaction using CBDC, known as the digital dirham. The transaction, valued at $13.6 million (50 million dirhams), took place with an Asian country via the multilateral CBDC bridge platform. This development is expected to enhance trade and investment facilitation between the two friendly nations.