The Financial Infrastructure Transformation (FIT) initiative was introduced by the Central Bank of the United Arab Emirates (CBUAE), with the intention of hastening the transition to digital operations within the financial services industry. The introduction of a central bank digital currency (CBDC) is one of the total nine projects that will be carried out as part of the program.
The following is taken directly from the announcement: “The FIT Programme intends to boost the financial services industry, encourage digital transactions, and allow the UAE’s competitiveness to become the financial and digital payment center.”
The first stage of the FIT program includes a number of different initiatives, including as the launch of a Card Domestic Scheme and an Instant Payments Platform, as well as the distribution of CBDCs for domestic and international usage.
According to the statements made by the UAE Central Bank, “These digital payment efforts will increase financial inclusion, promote payment innovation, security, and efficiency, and ultimately create a cashless society.”
The Central Bank of the United Arab Emirates (CBUAE) will expand its digital leadership as part of the FIT Programme by using supervisory technology and data management solutions. This will allow the CBUAE to carry out efficient supervisory operations and ensure financial stability.
The second phase of the FIT Programme involves the development of a variety of digital infrastructures, such as Open Finance Platforms, the Financial Cloud, and electronic Know Your Customer systems. These digital infrastructures will enhance regulatory compliance, as well as security and operational resilience, as well as promote innovation and improve the consumer experience.
A platform to support the nation’s “We the UAE 2031” vision and National Digital Economy Strategy will be established under the FIT Programme, and its full integration is slated to take place in 2026.
In addition, it advances the mission of the Central Bank of the United Arab Emirates (CBUAE), which is to enhance monetary and financial stability as well as consumer protection by using a robust financial system and digital technology.
The Governor of the Central Bank of the United Arab Emirates, His Excellency Khaled Mohamed Balama, made the following statement: “The FIT Programme symbolizes the directions and goals of our enlightened leadership towards digitizing the economy and growing the financial sector.” We are pleased to be constructing a foundation that will enable the flourishing of the financial ecosystem in the UAE and its further expansion.
Compiled by Coinbold