The Central Bank of the Emirates intends to issue a digital currency, in the first step of its kind in the Arab world, according to what was announced by the state news agency in the wealthy country, which has been leading a major digital transformation for years.

Many central banks around the world are exploring issuing their own digital currencies, in the face of the increasing popularity of cryptocurrencies and the high rates of online payments during the COVID-19 pandemic.

The Emirates News Agency said on Monday that the central bank's strategic plans between 2023 and 2026 include seven goals, "including issuing a digital currency and supporting digital transformation in the financial services sector (...) by adopting the latest technologies in artificial intelligence."

In addition to the goal of “developing a strong and secure financial cloud infrastructure for the financial and insurance sector services,” the bank’s plan aims to support “the green economy in the UAE and continue to develop a more innovative financial infrastructure to support the country’s competitiveness in this field.”

The announcement of the issuance of a digital currency is the first of its kind in the Arab world, noting that the UAE and Saudi Arabia announced earlier their intention to study the possibility of issuing a common digital currency.

The UAE, an oil-rich country that is constantly developing its service sectors, is one of the most dependent countries in the region on technology, artificial intelligence and digital transformation. The UAE economy is the second largest in the region after Saudi Arabia.

The issue of digital currencies is receiving increasing attention in many countries. As the European Central Bank considers issuing a "digital euro", China intends to enable athletes and visitors to use a digital currency during next year's Winter Olympics in Beijing.

Cryptocurrencies are stored in electronic media without the need for a bank account and are accepted as a method of payment by some companies.