The National Bank of Ras Al Khaimah (RAKBank) has achieved a notable milestone by becoming one of the first banks in the UAE to complete an international remittance using China’s digital Yuan (eCNY) in exchange for the Digital Dirham, the UAE’s central bank digital currency (CBDC). This transaction was facilitated through the Central Bank of the UAE’s (CBUAE) pioneering mBridge platform.
This groundbreaking transaction underscores the transformative potential of CBDCs in revolutionizing cross-border payments by providing real-time transfers with enhanced transparency and reduced costs. RAKBank’s participation places it among the early adopters of live CBDC platforms globally, positioning it at the forefront of financial innovation.
Project mBridge, launched in 2021, is an ambitious initiative designed to address common inefficiencies in cross-border payments, including high costs, slow processing times, and operational complexities. The project is a collaborative effort involving the CBUAE, 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.
At the heart of mBridge is a multi-central bank digital currency platform that utilizes distributed ledger technology (DLT). This platform enables participating central and commercial banks to perform real-time, peer-to-peer cross-border payments and foreign exchange transactions. The mBridge Ledger, built on blockchain technology, supports secure and instantaneous transactions.
The successful execution of this transaction by RAKBank highlights the bank’s advanced digital capabilities and marks a significant advancement in the global financial landscape. Raheel Ahmed, Group CEO of RAKBank, stated, “Our participation in the mBridge platform and the successful completion of our first central bank digital currency international payment demonstrate RAKBank’s commitment to innovation and excellence. This achievement solidifies our position as a leading bank in the UAE with a strong international payments arm.”
Vikas Suri, Co-Head of the Wholesale Banking Group at RAKBank, remarked, “The successful transfer of eCNY to our correspondent in China represents a significant breakthrough. This is one of the first UAE-led foreign currency transfers executed in local currencies without involving a third currency or conventional payment rails. This development paves the way for instant blockchain-based CBDC exchanges, fundamentally changing our approach to international payments. Moving forward, we will focus on leveraging mBridge to enhance the China-UAE business corridor, reducing costs and improving remittance speed for our clients.”
