The International Monetary Fund (IMF) has found that 19 countries, including the United Arab Emirates (UAE), are in the advanced stages of central bank digital currency (CBDC) testing.
In the Middle East, Bahrain and Saudi Arabia are also conducting CBDC tests. Georgia and Kazakhstan have entered the “concept proof” phase as pointed out by the IMF, following successful CBDC pilot programs (concept verification).
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BRICS Countries: Russian Foreign Minister states BRICS Union is not seeking global dominance
A digital currency aimed at facilitating cross-border payments is emerging within the BRICS Union, which could challenge the US dollar’s monopoly in global trade. Various sectors of the US economy are expected to feel the impact of this action.
According to the IMF, CBDCs have the potential to enhance financial inclusion and payment efficiency in BRICS and Middle Eastern countries, particularly by improving international payment services aimed at eliminating inefficiencies such as data format discrepancies, cross-border operational rules, and complex regulatory compliance checks.
This could lead to significant reductions in transaction costs, benefiting oil-exporting countries like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, members of the Gulf Cooperation Council (GCC).
