UAE dumps US dollar, goes digital Dirham in landmark China agreement

[Sharky1203]

In a notable move reshaping the global economic landscape, the United Arab Emirates (UAE), a member of the BRICS alliance, has recently undertaken a significant shift in its international trade transactions. Departing from the traditional reliance on the US dollar, the UAE has opted to pay its dues to China using its newly introduced Digital Dirham, a digital version of its national currency.

This strategic move not only marks a departure from the established norm of denominating global transactions in the US dollar but also underscores the evolving dynamics within the BRICS coalition.

UAE Digital Dirham cross-border payment is a first​

Sheikh Mansour Bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of the Central Bank of the UAE, made history on Monday by initiating the first cross-border payment of Dh50 million using the UAE Central Bank’s digital currency, ‘Digital Dirham’.

Sheikh Mansour made the historic transaction directly to China through the ‘mBridge’ platform while attending the ‘Golden Jubilee’ celebration of the Central Bank’s establishment and the graduation of 1,056 Emiratis from the first batch of the ‘Ethraa Emiratisation’ program at the Abu Dhabi National Exhibition Centre.

Project mBridge was launched in 2021 by the central monetary authorities of China, Hong Kong, Thailand, and the UAE in collaboration with the Bank for International Settlement (BIS). It is the only international collaborative partnership that includes China. The project finished its first pilot in Sept 2022.

One member of the United States Congress also noted mBridge’s advancements – Representative Maxine Waters, a member of the House Financial Services Committee, expressed concern that the initiative could be used as a cover for evading economic sanctions.

In addition, Sheikh Mansour underscored the Central Banks’ responsibility to promote economic growth to support development initiatives in the country. According to him, this should be achieved by ensuring financial and monetary stability, as well as enhancing the efficiency and adaptability of the financial system.

The end goal of these developments is to strengthen the UAE’s position as a global financial center. He further emphasized the leadership’s strategic dedication to this objective.

UAE commits to empowering its citizens to financial freedom​

Additionally, Sheikh Mansour emphasized the commitment of the leadership to empowering Emirati citizens and cultivating their expertise in various domains of expertise and professional practice.

He added that this commitment is designed to supply the financial sector with exceptionally skilled domestic personnel in accordance with the most stringent global criteria and to contribute to the nation’s broader cultural and developmental renaissance.

Sheikh Mansour extended his sincere congratulations to the esteemed graduates of the first cohort of the Ethraa program, the staff of the Central Bank, and the Emirates Institute of Finance and wished them the utmost success in their endeavors to serve their nation and contribute to its ongoing advancement.

On this occasion, the subsidiaries of the Central Bank erected the ‘Innovative Projects’ Pavilion, where the Vice President was briefed on the exhibits.

Additionally, he observed the establishment of Al Etihad Payments, a venture that manages the local payment card system, through the execution of the initial effective financial transaction using a payment card featuring unique attributes.

Additionally, the services offered by the Aani immediate payment platform, which was introduced by Al Etihad Payments in October 2023, and the supervisory technology project ‘Suptech’ were explained to Sheikh Mansour.

The collapse of the United States Dollar​

The BRICS countries, the UAE and China, have billion-dollar trade deals, and using Digital Dirhams as payment jeopardizes the US dollar. If the two BRICS countries continue to pay in Digital Dirhams, the US dollar will be affected most severely.

The UAE, a new BRICS member, is looking for innovative ways to propel the Digital Dirham ahead of the US currency. Furthermore, China encourages developing countries to prioritize their indigenous currencies in trade settlements above the US dollar.

The Digital Dirham is the United Arab Emirates’ central bank digital currency (CBDC), launched as part of the Central Bank Digital Currency Strategy. It involves wholesale and retail CBDC issuance, aiming to enhance domestic and cross-border payments, promote financial inclusion, and transition towards a cashless economy.

https://www.msn.com/en-us/money/mar...S&cvid=6f27f27af01f44079ae51e15e97b8b87&ei=42

 

[BioHawk]

Yeah, a completely cashless society. What could possibly go wrong with that? Honestly, depending on how big of a threat this actually is the CIA should trigger an "emergency" and demonstrate why being 100% dependent on a digital currency is a really bad idea.

But I will allow for the fact that I really don't know much about this stuff and my gut instinct could be wrong on it.

 

[seminole97]

Yeah, a completely cashless society. What could possibly go wrong with that? Honestly, depending on how big of a threat this actually is the CIA should trigger an "emergency" and demonstrate why being 100% dependent on a digital currency is a really bad idea.

What would that be?

It's underappreciated how the abuse of our privileged position as issuer of the global reserve currency can come back to bite us. Without the prop of foreign demand, we'd enjoy the full brunt of our inflation. Currently, we're able to export a degree of that inflation to all the other users of dollars.
Until they decide using dollars is worse than some alternative.

One member of the United States Congress also noted mBridge’s advancements – Representative Maxine Waters, a member of the House Financial Services Committee, expressed concern that the initiative could be used as a cover for evading economic sanctions.

 

[Bonerfarts]

 

[GES4]

In a notable move reshaping the global economic landscape, the United Arab Emirates (UAE), a member of the BRICS alliance, has recently undertaken a significant shift in its international trade transactions. Departing from the traditional reliance on the US dollar, the UAE has opted to pay its dues to China using its newly introduced Digital Dirham, a digital version of its national currency.

This strategic move not only marks a departure from the established norm of denominating global transactions in the US dollar but also underscores the evolving dynamics within the BRICS coalition.

UAE Digital Dirham cross-border payment is a first​

Sheikh Mansour Bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of the Central Bank of the UAE, made history on Monday by initiating the first cross-border payment of Dh50 million using the UAE Central Bank’s digital currency, ‘Digital Dirham’.

Sheikh Mansour made the historic transaction directly to China through the ‘mBridge’ platform while attending the ‘Golden Jubilee’ celebration of the Central Bank’s establishment and the graduation of 1,056 Emiratis from the first batch of the ‘Ethraa Emiratisation’ program at the Abu Dhabi National Exhibition Centre.

Project mBridge was launched in 2021 by the central monetary authorities of China, Hong Kong, Thailand, and the UAE in collaboration with the Bank for International Settlement (BIS). It is the only international collaborative partnership that includes China. The project finished its first pilot in Sept 2022.

One member of the United States Congress also noted mBridge’s advancements – Representative Maxine Waters, a member of the House Financial Services Committee, expressed concern that the initiative could be used as a cover for evading economic sanctions.

In addition, Sheikh Mansour underscored the Central Banks’ responsibility to promote economic growth to support development initiatives in the country. According to him, this should be achieved by ensuring financial and monetary stability, as well as enhancing the efficiency and adaptability of the financial system.

The end goal of these developments is to strengthen the UAE’s position as a global financial center. He further emphasized the leadership’s strategic dedication to this objective.

UAE commits to empowering its citizens to financial freedom​

Additionally, Sheikh Mansour emphasized the commitment of the leadership to empowering Emirati citizens and cultivating their expertise in various domains of expertise and professional practice.

He added that this commitment is designed to supply the financial sector with exceptionally skilled domestic personnel in accordance with the most stringent global criteria and to contribute to the nation’s broader cultural and developmental renaissance.

Sheikh Mansour extended his sincere congratulations to the esteemed graduates of the first cohort of the Ethraa program, the staff of the Central Bank, and the Emirates Institute of Finance and wished them the utmost success in their endeavors to serve their nation and contribute to its ongoing advancement.

On this occasion, the subsidiaries of the Central Bank erected the ‘Innovative Projects’ Pavilion, where the Vice President was briefed on the exhibits.

Additionally, he observed the establishment of Al Etihad Payments, a venture that manages the local payment card system, through the execution of the initial effective financial transaction using a payment card featuring unique attributes.

Additionally, the services offered by the Aani immediate payment platform, which was introduced by Al Etihad Payments in October 2023, and the supervisory technology project ‘Suptech’ were explained to Sheikh Mansour.

The collapse of the United States Dollar​

The BRICS countries, the UAE and China, have billion-dollar trade deals, and using Digital Dirhams as payment jeopardizes the US dollar. If the two BRICS countries continue to pay in Digital Dirhams, the US dollar will be affected most severely.

The UAE, a new BRICS member, is looking for innovative ways to propel the Digital Dirham ahead of the US currency. Furthermore, China encourages developing countries to prioritize their indigenous currencies in trade settlements above the US dollar.

The Digital Dirham is the United Arab Emirates’ central bank digital currency (CBDC), launched as part of the Central Bank Digital Currency Strategy. It involves wholesale and retail CBDC issuance, aiming to enhance domestic and cross-border payments, promote financial inclusion, and transition towards a cashless economy.

https://www.msn.com/en-us/money/mar...S&cvid=6f27f27af01f44079ae51e15e97b8b87&ei=42

I'll take the USD over UAE's ghost money or China's collapsing economy.

 

[Sharky1203]

I'll take the USD over UAE's ghost money or China's collapsing economy.

I just posted an article about that very thing.

 

[seminole97]

View embedded media

Bretton Woods wasn't adopted because of the size of the U.S. Navy. It was adopted because the U.S. promised an international gold standard, and that USD could be exchanged for a fixed weight of gold.

World trade was built for several decades after WW2 on that medium of exchange, but we were cheating the gold standard, and printing money that wasn't backed by gold. Charles de Gaulle called bullshit, and started redeeming dollars for gold. The U.S. response wasn't to stop printing money unbacked by gold, instead we broke 'full faith and credit' of the US dollar (again, it had already been broken to the American public in 1933) in 1971.

Now we operate a fiat currency like all the other nations, we just enjoy the advantage of faith in our laws (that we won't expropriate someone's deposits), and an appreciation that we inflate our currency slower than other countries (the USD as the 'least dirty shirt' in the international laundry basket of currencies).

Other countries electing to not settle transactions in USD will lower demand for USD, and thereby lower the purchasing power of USD.

As China moves into position as the largest trading partner of most nations on the globe, why should they use the USD?



With a population of 3.2 billion—and shortly to be expanded—the BRICS (Brazil, China, India, Russia and South Africa) outnumber the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom and the US) by a factor of four. Even so, the BRICS’ aggregate gross national income (GNI), adjusted for comparative purchasing power, is only marginally greater than that of the G7—$42.4 trillion compared with $42.1 trillion.

 

[tumorboy]

Yeah, a completely cashless society. What could possibly go wrong with that? Honestly, depending on how big of a threat this actually is the CIA should trigger an "emergency" and demonstrate why being 100% dependent on a digital currency is a really bad idea.

But I will allow for the fact that I really don't know much about this stuff and my gut instinct could be wrong on it.

 

[BioHawk]

What would that be?

It's underappreciated how the abuse of our privileged position as issuer of the global reserve currency can come back to bite us. Without the prop of foreign demand, we'd enjoy the full brunt of our inflation. Currently, we're able to export a degree of that inflation to all the other users of dollars.
Until they decide using dollars is worse than some alternative.

One member of the United States Congress also noted mBridge’s advancements – Representative Maxine Waters, a member of the House Financial Services Committee, expressed concern that the initiative could be used as a cover for evading economic sanctions.

Which is why we need to prevent this from happening. The United States might abuse our privileged position, but these other countries benefit from it by us buying their shit.

 

[Bonerfarts]

Bretton Woods wasn't adopted because of the size of the U.S. Navy. It was adopted because the U.S. promised an international gold standard, and that USD could be exchanged for a fixed weight of gold.

World trade was built for several decades after WW2 on that medium of exchange, but we were cheating the gold standard, and printing money that wasn't backed by gold. Charles de Gaulle called bullshit, and started redeeming dollars for gold. The U.S. response wasn't to stop printing money unbacked by gold, instead we broke 'full faith and credit' of the US dollar (again, it had already been broken to the American public in 1933) in 1971.

Now we operate a fiat currency like all the other nations, we just enjoy the advantage of faith in our laws (that we won't expropriate someone's deposits), and an appreciation that we inflate our currency slower than other countries (the USD as the 'least dirty shirt' in the international laundry basket of currencies).

Other countries electing to not settle transactions in USD will lower demand for USD, and thereby lower the purchasing power of USD.

As China moves into position as the largest trading partner of most nations on the globe, why should they use the USD?

View embedded media

With a population of 3.2 billion—and shortly to be expanded—the BRICS (Brazil, China, India, Russia and South Africa) outnumber the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom and the US) by a factor of four. Even so, the BRICS’ aggregate gross national income (GNI), adjusted for comparative purchasing power, is only marginally greater than that of the G7—$42.4 trillion compared with $42.1 trillion.

You didn't watch the video.

 

[seminole97]

You didn't watch the video.

I did.
His talk about the USN as a reason people use the dollar is idiotic. There is no relation.

The British used Spanish coins because of their physical qualities, not their national origin:

By far the leading specie coin circulating in America was the Spanish silver dollar, defined as consisting of 387 grains of pure silver. The dollar was divided into "pieces of eight," or "bits," each consisting of one-eighth of a dollar. Spanish dollars came into the North American colonies through lucrative trade with the West Indies. The Spanish silver dollar had been the world's outstanding coin since the early 16th century, and was spread partially by dint of the vast silver output of the Spanish colonies in Latin America. More important, however, was that the Spanish dollar, from the 16th to the 19th century, was relatively the most stable and least debased coin in the Western world.

The USD was cemented as the basis of world trade post WW2 by the Bretton Woods agreement that established an international gold standard.

Our debasement of that currency since 1971 (and particularly since 2008) is what threatens its status as the reserve currency. What would step in to replace it would be something that demonstrated itself to be more stable in value, and thereby useful in long term economic planning.

CBDCs are just more fiat, and in and of themselves not a threat to the existing financial order. I think in time people will be forced into using them, as it makes things easier for the bureaucrats to manage.