The United Arab Emirates has achieved a major milestone in global digital finance by completing its first-ever cross-border payment using a central bank digital currency (CBDC) with China. The historic transaction marks a significant step toward modernizing international payments and strengthening financial cooperation between the two nations.
The payment was executed by Sheikh Mansour bin Zayed Al Nahyan, Vice President of the UAE and Chairman of the Board of the Central Bank of the UAE (CBUAE), during a high-level meeting in Abu Dhabi with Pan Gongsheng, Governor of the People’s Bank of China. This moment also marked the official launch of the mBridge platform for live cross-border CBDC transactions.
The transaction involved a payment of AED 50 million, sent using the UAE’s CBDC known as the Digital Dirham. This was settled through the mBridge platform, a distributed ledger technology-based system designed to enable secure, instant, and efficient cross-border payments directly between central banks and participating financial institutions. The successful execution of this payment demonstrates how CBDCs can offer faster, more transparent, and cost-effective alternatives to traditional correspondent banking networks.
Alongside this groundbreaking payment, the UAE and China unveiled a set of additional financial initiatives aimed at boosting bilateral cooperation. One of the major developments is the interlinking of the UAE’s Instant Payment System with China’s Internet Banking Payment System. This integration allows users in both countries to conduct real-time transfers around the clock, providing significant benefits for students, residents, businesses, and cross-border commerce.
Another noteworthy launch is the new multi-scheme prepaid card called Jaywan–UnionPay. This card has been introduced through a partnership between the UAE’s domestic payment scheme “Jaywan” and China’s UnionPay. The card will support seamless transactions both within the UAE and in international markets, while ensuring that local transactions inside the UAE remain fully domestically processed. This step enhances payment convenience for travellers, residents, and businesses engaged in UAE–China trade.
In addition to these operational advancements, the central banks of both nations signed a new Memorandum of Understanding aimed at strengthening cooperation in digital finance, payment system innovation, and ongoing financial infrastructure development. This agreement supports long-term collaboration in CBDC research, digital payment systems, and technological exchange.
The mBridge platform itself is part of the UAE’s broader Financial Infrastructure Transformation (FIT) program, which aims to position the country as a global leader in digital payments and financial innovation. The platform was built in partnership with several central banks and financial authorities across Asia and is expected to expand further in the coming years, with more central banks preparing to join the network.
This first cross-border CBDC payment is seen as a major milestone in the evolution of global finance. It showcases how digital currencies issued by central banks can move from controlled pilot environments into real-world financial transactions. As more countries explore CBDCs, the UAE’s achievement could serve as a model for future multi-CBDC cooperation, enabling faster, safer, and more efficient international payments.
With this achievement, the UAE continues to position itself as a forward-thinking financial hub, embracing innovation to enhance economic growth, strengthen global partnerships, and shape the future of digital finance.
