Potential Role of CBDCs in Cross-Border Trade Acknowledged by China and UAE

China and the United Arab Emirates (UAE) have recognized the significant impact of central bank digital currencies (CBDC) on cross-border trade and investment. Both countries have affirmed their dedication to strengthening bilateral and multilateral cooperation regarding their CBDCs. China commended the UAE for their successful direct cross-border payment transaction using CBDC, specifically the digital dirham. The transaction, totaling .6 million (50 million dirhams) with an Asian country, was facilitated through the multilateral CBDC bridge platform. This milestone is poised to bolster trade and investment between the two nations, fostering closer ties and facilitating economic growth.