Mansour Bin Zayed Launches First Cross-Border CBDC Payment Initiatives Between UAE And China
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President and Deputy Prime Minister of the UAE, recently hosted Pan Gongsheng, Governor of the People’s Bank of China, at Qasr Al Watan in Abu Dhabi. The meeting marked a significant milestone as H.H. Sheikh Mansour executed the first cross-border payment using central bank digital currency (CBDC) between the UAE and China through the ‘mBridge’ network.
The gathering also celebrated the successful interlinking of financial infrastructures between both nations. Attendees included Khaled Mohamed Balama, Governor of the Central Bank of the UAE, Zhang Yiming, Ambassador of China to the UAE, and other senior officials. These events highlighted key projects aimed at enhancing financial cooperation.
The inauguration of the ‘mBridge’ platform for CBDCs was a focal point. This platform, developed with Emirati and Chinese banks, aims to facilitate cross-border payments by reducing transaction costs and enabling instant settlements. Plans are underway to expand this platform in 2026 by including more central banks to boost economic prospects.
Another significant development is the interlinking of payment systems between the UAE and China. This integration allows users in both countries to conduct secure, instant money transfers anytime. It supports various use cases such as scholarship transfers for Emirati students in China and remittances for Chinese residents in the UAE.
The launch of the first multi-scheme prepaid card named ‘Jaywan–UnionPay’ marks another milestone. This card reflects collaboration between the UAE’s Jaywan scheme and China’s UnionPay. Issued with Lari Exchange's partnership, it ensures global acceptance through UnionPay’s extensive network while processing transactions locally within the UAE.
Khaled Mohamed Balama and Pan Gongsheng signed a Memorandum of Understanding (MoU) to enhance cooperation in cross-border payments. The MoU focuses on developing financial infrastructures and supporting joint strategic initiatives that deepen partnerships between both countries.
Commenting on these advancements, H.H. Sheikh Mansour bin Zayed stated: "These advanced initiatives reflect the depth of the strategic partnership between the United Arab Emirates and the People’s Republic of China, and open new horizons for economic, financial, and technological cooperation."
The introduction of these initiatives represents tangible steps towards creating a modern financial infrastructure that encourages innovation. By facilitating seamless cross-border payments, they enhance the UAE’s competitive edge and leadership in global financial innovation.
With inputs from WAM
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