The International Monetary Fund (IMF) has found that 19 countries, including the United Arab Emirates (UAE), are in the later stages of central bank digital currency (CBDC) testing.
In the Middle East, Bahrain and Saudi Arabia are also conducting CBDC tests. Georgia and Kazakhstan are in the “concept proof” phase, as highlighted by the IMF, following successful CBDC pilot programs (concept validation).
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BRICS: Russian Foreign Minister says BRICS alliance not seeking global dominance
A digital currency aimed at facilitating cross-border payments is emerging within the BRICS alliance, which could challenge the US dollar’s monopoly in global trade. Various sectors of the US economy are expected to feel the impact of this move.
According to the IMF, CBDCs have the potential to enhance financial inclusion and payment efficiency in BRICS and Middle Eastern countries, particularly by improving international payment services to address inefficiencies such as data format discrepancies, cross-border operating rules, and complex regulatory compliance checks.
This could result in significantly lower transaction costs, benefiting oil-exporting countries like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, members of the Gulf Cooperation Council (GCC).
