Key Takeaways
- The UAE has joined the global CBDC race, officially launching its Digital Dirham pilot.
- Over 130 countries — representing 98% of global GDP — are developing or testing CBDCs.
- Only four countries have fully launched their digital currencies so far.
Around the world, central banks are accelerating efforts to issue their own digital currencies, known as Central Bank Digital Currencies (CBDCs), to modernize financial systems and reduce reliance on private cryptocurrencies and cash.
As of November 2025, 137 countries and currency unions, representing nearly the entire global economy, are actively exploring CBDCs.
Yet, only a handful have successfully launched fully operational systems.
This week, the United Arab Emirates became the latest nation to take a major step forward, launching a pilot of its Digital Dirham, signaling its ambitions to join the small but growing list of countries experimenting with government-backed digital currencies.
What Are CBDCs?
CBDCs are a digital form of a nation’s fiat currency, issued and regulated by its central bank.
Unlike cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), CBDCs are centralized and fully backed by the issuing authority.
The primary goals of CBDCs vary by country — from improving cross-border payment efficiency to expanding financial inclusion and reducing the costs of handling cash.
Some also see CBDCs as tools for strengthening monetary sovereignty in an increasingly digital financial landscape.
CBDCs typically come in two forms:
- Retail CBDCs, which target consumers for payments and savings; and
- Wholesale CBDCs, which focus on interbank transfers and settlements between financial institutions.
The UAE’s Digital Dirham
The United Arab Emirates officially launched its Digital Dirham pilot on Nov. 11, 2025, executing the country’s first blockchain-based transaction through the central bank.
The Digital Dirham is a retail CBDC pegged 1:1 to the UAE dirham (AED), built to support faster, cheaper, and more secure financial transactions.
The pilot is being developed using mBridge, a multi-CBDC cross-border platform co-developed by the central banks of the UAE, China, Hong Kong, and Thailand.
According to the UAE Central Bank, the Digital Dirham will be gradually expanded into peer-to-peer, commercial, and cross-border use cases throughout 2026, with a full launch targeted for late 2026.
Officials have said the CBDC will help reduce remittance costs, a key economic driver in the Gulf, while improving transparency, security, and interoperability with other digital payment systems.
Launched CBDCs: The Early Pioneers
Despite the global rush, only four countries have successfully launched CBDCs with full retail functionality:
Bahamas — The Sand Dollar (2020)
The Sand Dollar is the world’s first retail CBDC, issued by the Central Bank of The Bahamas as a 1:1 digital representation of the Bahamian dollar (BSD), which is pegged to the U.S. dollar.
Its launch was driven by the Bahamas’ high cash-handling costs and frequent hurricane disruptions to physical currency distribution.
By mid-2025, over 200,000 wallets will have been created in a population of 400,000 — yet circulation remains below 1% of the total currency issued.
Nigeria — eNaira (2021)
The eNaira is Africa’s first retail central bank digital currency, launched by the Central Bank of Nigeria as a 1:1 digital version of the Naira and built on the Hyperledger Besu blockchain.
Designed to expand access to financial services, the eNaira targets the country’s large unbanked population, nearly 40% of adults, while addressing the high costs of remittances and restrictions on crypto use.
Users can access the eNaira through wallet apps that support peer-to-peer and merchant payments, offline transactions, and even smart contract-based remittance tools.
By October 2024, the eNaira had recorded more than 13 million wallets, a twelvefold increase since Nigeria’s 2022 cash shortage, with ₦18.32 billion in transactions over the first ten months of the year.
Still, despite its impressive reach on paper, 98.5% of wallets were inactive on a weekly basis, according to the IMF.
Jamaica — JAM-DEX (2022)
Launched in 2022, JAM-DEX, short for Jamaica Digital Exchange, is the country’s retail CBDC issued by the Bank of Jamaica.
It’s pegged 1:1 to the Jamaican dollar (JMD) and operates on a centralized ledger.
The CBDC was introduced to modernize Jamaica’s cash-heavy economy, where nearly 28% of adults remain unbanked.
It looks to make payments faster, cheaper, and more inclusive for everyday users and small merchants.
By March 2025, JAM-DEX circulation had reached J$258 million, with 230 million units minted since its launch.
Yet despite steady issuance, usage has remained modest — as of July 2024, only 257 million units were active, reflecting the broader challenge of driving CBDC adoption in a market still heavily reliant on cash.
Zimbabwe — ZiG (2024)
ZiG, short for Zimbabwe Gold, is the country’s retail CBDC issued by the Reserve Bank of Zimbabwe.
The token is backed by a basket of assets, including 40% gold reserves and U.S. dollars, making it one of the few hybrid-backed CBDCs in circulation.
Introduced in 2024, ZiG was designed to stabilize Zimbabwe’s volatile currency system and restore confidence after years of inflation and currency devaluation.
By February 2025, ZiG accounted for 43% of formal-sector transactions, up from 26% at launch, and processed the equivalent of $480 million in pilot procurement activity.
However, challenges remain.
The informal economy, which dominates daily trade, still prefers the U.S. dollar, as ZiG has lost 94% of its value since launch, highlighting the difficulty of building trust in a digital currency amid persistent macroeconomic instability.
Piloting CBDCs: Where the Next Launches Are Brewing
A further 49 countries are currently piloting CBDCs, testing everything from cross-border trade settlements to retail payments.
Among the most notable active pilots are:
Beyond these headline pilots, a diverse range of countries is conducting their own CBDC experiments.
Indonesia, Kazakhstan, the Philippines, and Russia are testing digital currencies for regional remittances and public-sector payments, while Sweden’s e-Krona continues to explore how digital money could coexist with cash in advanced economies.
In Turkey, the Digital Lira is in limited testing across government procurement, and the United Arab Emirates’ Digital Dirham pilot has already executed its first successful transaction.
Developing CBDCs
Beyond active pilots, 72 countries are in the early or mid-stage of CBDC development.
These nations — including the U.K., Japan, Malaysia, Kenya, and Iran — are researching technological models, regulatory frameworks, and economic implications.
The United States remains the biggest outlier. Political opposition and privacy concerns have stalled the digital dollar initiative, even as the private stablecoin market flourishes.
Meanwhile, Singapore, Hong Kong, and Japan are pushing forward with digital currency experiments focusing on tokenized deposits and wholesale systems rather than fully public CBDCs.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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