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RAKBANK Completes First CBDC Transfer via mBridge

The National Bank of Ras Al Khaimah- RAKBANK announced today that it is one of the first banks in the United Arab Emirates to successfully execute an international remittance using China’s digital Yuan (eCNY) in exchange for the Digital Dirham, the UAE’s CBDC. This transaction highlights the transformative potential of Central Bank Digital Currencies (CBDCs) in revolutionizing cross-border payments by delivering in real-time with enhanced transparency, and reduced costs. RAKBANK becomes one of the first banks globally to be part of a live CBDC platform and is ready to transact. 

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Understanding Project mBridge 

Project mBridge is an ambitious initiative aimed at addressing inefficiencies in cross-border payments, such as high costs, slow processing times, and operational complexities. Launched in 2021, it is a collaborative effort between the Central Bank of the United Arab Emirates (CBUAE), the BIS Innovation Hub, the Bank of Thailand, the Digital Currency Institute of the People’s Bank of China, and the Hong Kong Monetary Authority.  

The core of mBridge is a multi-central bank digital currency platform, built on distributed ledger technology (DLT). This platform allows participating central and commercial banks to conduct real-time, peer-to-peer cross-border payments and foreign exchange transactions. The mBridge Ledger, a new blockchain, underpins the platform, supporting secure and instantaneous transactions. 

The landmark transaction by RAKBANK not only highlights the bank’s cutting-edge digital capabilities but also marks a significant step forward in the global financial landscape.  

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