FinTech & Digital Transformation
We are working tirelessly to sustain an advanced, modern, future-ready financial system across the UAE.
FinTech Office Overview and Mission:
Launched by The Central Bank of the UAE in 2020, the FinTech Office aims to build a mature FinTech ecosystem in the UAE and position the UAE as the foremost FinTech hub regionally and globally. It works with key stakeholders to develop a FinTech ecosystem with five pillars: 1) Demand, 2) Capital, 3) Policy, 4) Talent, and 5) Infrastructure. The FinTech office has launched initiatives targeting each of the five pillars for which a range of initiatives are underway currently.
FinTech Regulatory Development
Guidelines for Financial Institutions adopting Enabling Technologies
CBUAE, with the SCA, DFSA, FSRA (collectively referred to as “Supervisory Authorities”), issued “Guidelines for Financial Institutions adopting Enabling Technologies” (“the Guidelines”). Their purpose is to provide a set of principles when using enabling technologies in financial services and accompanying guidance. The key principles are broad enough to cater to different business models, operating systems and financial services offered by existing organisations operating in, and new entrants to, the financial services sector. The key principles are accompanied by more detailed guidance for institutions to consider when using enabling technologies.
The CBUAE has developed regulations to introduce a co-sandboxing arrangement, which provides harmonised regulatory requirements and procedures for entities looking to launch a FinTech solution in both onshore and financial free zones.
Central Bank Digital Currency
The FinTech Office at the CBUAE is researching the impact of new technologies on the financial sector. One of the major development areas in this field involves central bank digital currencies (CBDC). The CBUAE was involved in two major projects with other international central banks and entities, which reflect its goal of understanding better how technology is shaping the financial industry.
Launched in 2018 to explore and evaluate the capabilities and challenges surrounding distributed ledger technology (DLT – also known as “blockchain”).Discover More
The CBUAE together with the Bank for International Settlements, Innovation Hub Centre in Honk Kong, the Hong Kong Monetary Authority, the Bank of Thailand, and the Digital Currency Institute of the People’s Bank of China have issued the first Multiple CBDC Bridge (mBridge) Project report - a major milestone of international trade payment project, and a step closer to making cross-border trade payments easier, safer and in real-time,Discover more
Other CBDC Projects
Money and payment systems are evolving faster than ever - a result of the rapid development and increased accessibility of technology. Presently, 67 Central Banks around the globe are engaged in CBDC research, proofs of concept and pilot projects. To keep up with these developments, the CBUAE has engaged in CBDC research since 2018. In addition to the wholesale, cross-border CBDC projects ABER and MBridge, the CBUAE is examining different technologies options and implementation models actively for a retail domestic CBDC. This research focusses on selecting the most suitable technology and implementation model for the UAE to maximize the benefits and mitigate potential risks.Payments and Settlements
Last updated on: Wednesday 07 June 2023
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