RAKBANK: First Central Bank Digital Yuan Currency Transfer via mBridge
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    RAKBANK: First Central Bank Digital Yuan Currency Transfer via mBridge

    Fintechnews Middle East2 Mins Read
    RAKBANK Marks Milestone With Its First Central Bank Digital Currency Transfer via mBridge
    RAKBANK has become one of the first banks in the UAE to execute a cross-border Central Bank Digital Currency (CBDC) payment using the mBridge platform.
    This transaction involved the instantaneous transfer of Digital Dirham against digital Chinese Yuan, marking a significant milestone in digital banking transformation.
    The mBridge project, launched in 2021, aims to address inefficiencies in cross-border payments. It is a collaborative effort involving 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 Hong Kong Monetary Authority. The platform uses distributed ledger technology to enable real-time, peer-to-peer cross-border payments and foreign exchange transactions.
    This initiative aligns with RAKBANK’s strategy to support the UAE-China business corridor and improve the efficiency of remittances.
    Raheel Ahmed
    Raheel Ahmed

    Raheel Ahmed, Group CEO of RAKBANK, commented:

    “The participation of RAKBANK in the mBridge platform and the execution of our first-ever central bank digital currency international payment highlight RAKBANK’s cutting-edge digital capabilities. This milestone reflects our commitment to breaking boundaries and solidifying our position as a leading retail and commercial bank in the UAE, with a rapidly expanding international payments arm”.

    Vikas Suri
    Vikas Suri

    Vikas Suri, Co-Head of Wholesale Banking Group at RAKBANK, added,

    “The successful transfer of eCNY to our correspondent in China is a game-changer in several respects. It’s one of the first UAE-led foreign currency transfers executed in local currencies without involving a third currency to China and without using conventional payment rails. This is a gamechanger that paves the way for instant blockchain based CBDC exchanges with payment versus payment, fundamentally altering how we approach international payments. Our next steps will focus on supporting the China and UAE business corridor for our clients, by leveraging mBridge to reduce costs and improve the speed of remittances.”

     

    Featured image credit: Raheel Ahmed, Group CEO of RAKBANK

     

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