UAE and China Pioneer First Cross-Border CBDC Payment, Marking Digital Finance Milestone

According to Central Bank of UAE announcement, In a landmark development for global financial innovation, the United Arab Emirates (UAE) and China executed the world's first cross-border payment using central bank digital currencies (CBDCs) on November 19, 2025. The transaction was personally initiated by Sheikh Mansour bin Zayed Al Nahyan, UAE Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Central Bank of the UAE (CBUAE), during a high-level meeting with Pan Gongsheng, Governor of the People's Bank of China (PBOC). Also present was Khaled Mohamed Balama, Governor of the CBUAE.

This direct digital dirham-to-digital yuan transfer symbolizes deepening economic ties between the two nations and positions them at the forefront of programmable money adoption.

The payment was facilitated through the mBridge platform, a multi-central bank digital currency (multi-CBDC) network developed by the Bank for International Settlements (BIS) in collaboration with central banks including those of the UAE and China. It integrated the UAE's Jisr CBDC platform with China's e-CNY system, linking the UAE's Instant Payment System to China's Internet Banking Payment System for seamless, 24/7 operations. Emirati and Chinese banks participated in the pilot, enabling instant settlement without intermediaries. While the exact transaction amount was not disclosed, it demonstrated real-world applicability for remittances, scholarships, and commercial trade.

This achievement builds on years of pilot testing under the mBridge project, launched in 2021, which has evolved into a production-ready system for wholesale cross-border payments. The UAE's digital dirham, officially recognized as legal tender earlier in 2025, and China's advanced e-CNY ecosystem provided the foundation for this interoperability. Experts hail it as a step toward reducing reliance on traditional correspondent banking, which often incurs high fees and delays.

The implications are profound for bilateral trade, which exceeded $100 billion in 2024, by slashing costs by up to 50% and enhancing transparency through blockchain-like traceability. It also supports the UAE's Vision 2031 for financial leadership and China's Belt and Road Initiative. Plans for expansion in 2026 include onboarding additional central banks, potentially revolutionizing global remittances for the 280 million migrant workers worldwide.

This UAE-China breakthrough underscores a shift toward a digitized, inclusive financial future, fostering innovation while mitigating risks like currency volatility. As more nations join, it could redefine international payments, boosting efficiency and economic resilience.