Revolution in international payments: Central Bank of Ras Al Khaimah completes groundbreaking digital currency exchange
The Central Bank of Ras Al Khaimah Successfully Completes a Groundbreaking Exchange of Digital Currencies
The Central Bank of Ras Al Khaimah (RAKBANK) has successfully exchanged the digital yuan (eCNY) of China for the digital dirham, the Central Bank Digital Currency (CBDC) of the United Arab Emirates. This innovative transaction was made possible through the mBridge platform, an initiative by the Central Bank of the UAE aimed at enhancing international payments.
The mBridge Platform – Revolutionizing the International Payments Market
The exchange of eCNY for digital dirham using the mBridge platform of the Central Bank of the UAE marks a significant advancement in modern payment solutions. The mBridge project was launched in 2021 and is a result of collaboration between the Central Bank of the UAE, the BIS Innovation Hub, the Bank of Thailand, the Digital Currency Institute of the People’s Bank of China, and the Monetary Authority of Hong Kong.
Advantages of the mBridge Platform and the Future of International Payments
The mBridge platform facilitates real-time interbank transactions using digital currencies issued by central banks. Through participation in mBridge, RAKBANK completed its first international payment using CBDC, showcasing the bank’s advanced digital capabilities. mBridge is based on distributed ledger technology, and the mBridge Ledger ensures secure and instantaneous transactions.
Executing eCNY transactions to China without the need for a third-currency intermediary and without using traditional payment methods is a breakthrough in international payments. The implementation of the mBridge platform paves the way for instant CBDC exchanges with PVP settlement, fundamentally changing the approach to international monetary settlements.
In conclusion, the successful exchange of eCNY for digital dirham through the mBridge platform represents a groundbreaking advancement in international payments, heralding a revolution in the way transactions are conducted worldwide.
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