Ras Al Khaimah: RAKBANK (National Bank of Ras Al Khaimah) marks a milestone with first central bank digital currency transfer via mBridge. It is one of the first banks in the UAE to successfully execute an international remittance using China’s digital Yuan (eCNY) in exchange for the Digital Dirham, the UAE’s Central Bank Digital Currency (CBDC).
This significant breakthrough underscores the transformative power of CBDCs in revolutionizing cross-border payments by ensuring real-time transfers, improved transparency, and diminished costs. By participating in this remarkable event, RAKBANK has renowned itself as one of the first global banks to be part of a live CBDC platform and is now fully equipped to transact.
Project mBridge is a collective venture designed to overcome deformities in cross-border payments, including high costs, delays, and operational complexities. This project draws together the Central Bank of the UAE (CBUAE), 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 its core, mBridge operates on a multi-central bank digital currency platform built using distributed ledger technology (DLT). The platform provides real-time, peer-to-peer cross-border payments and foreign exchange transactions between participating central and commercial banks, all underpinned by the new blockchain-based mBridge Ledger.
RAKBANK’s participation in this pioneering transaction not only highlights the bank’s cutting-edge digital innovation but also marks a pivotal step in modulating the global financial landscape.
Raheel Ahmed, Group CEO of RAKBANK, stated that, “RAKBANK’s involvement in the mBridge platform and the successful execution of our inaugural central bank digital currency international payment highlights our advanced digital capabilities. This achievement underscores our dedication to pushing boundaries and reinforcing our position as a leading retail and commercial bank in the UAE, while rapidly putting up our international payments operations.”
Vikas Suri, Co-Head of the Wholesale Banking Group at RAKBANK, commented that, “The successful transfer of eCNY to our correspondent in China marks a significant milestone. It represents one of the first UAE-led foreign currency transfers conducted directly in local currencies, bypassing the need for a third currency or traditional payment methods. This innovation paves the way for instant blockchain-based CBDC exchanges, revolutionizing our approach to international payments”.
He further added that, “Our next steps will focus on holding hands for the China-UAE business corridor for our clients by leveraging mBridge to reduce costs and improve the speed of remittances.”