In what is being seen as a milestone in banking, the National Bank of Ras Al Khaimah has executed a cross-border Central Bank digital currency payment. RAKBANK has now become one of the first banks in the United Arab Emirates to execute such a transaction.
The trade instantaneously transferred the digital Dirham against the digital Chinese Yuan (eCNY) and was facilitated through the mBridge platform.
Project mBridge is an initiative launched by the Central Bank of the United Arab Emirates, or 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. Its goal is to tackle the inefficiencies of cross-border payments, such as high costs and slow processing times.
This transaction is part of RAKBANK’s push to be digital-first and execute cross-border payments with more ease. The move also highlights the potential of Central Bank Digital Currencies, or CBDCs, in making cross-border payments more transparent.
Raheel Ahmed, Group CEO of RAKBANK, says, “The participation of RAKBANK in the mBridge platform and the execution of our first-ever central bank digital currency international payment highlights RAKBANK’s cutting-edge digital capabilities.
He adds, “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.”
