Increasingly Ambitious to Become a Digital Financial Center, This is the United Arab Emirates’ New Strategy

Todaysgist, News – The Institute of Certified Public Accountants in England and Wales (ICAEW) has partnered with the United Arab Emirates (UAE) Banking Federation to help businesses understand and adapt to the digital asset landscape.

The partnership aims to support the UAE’s position as a global leader in digital finance. However, challenges such as the lack of standardized accounting for digital assets and the need for strong cybersecurity have been highlighted.

The collaboration comes as the UAE’s central bank digital currency (CBDC) reaches an advanced testing phase. ICAEW Middle East head Hanadi Khalife said the partnership underscores the UAE’s leadership in CBDC adoption.

“The UAE is setting a global standard with its proactive adoption of CBDCs. Our partnership with the UAE Banks Federation is a testament to our commitment to guiding this transformation. Accountants play a critical role in ensuring compliance and organizational success in this new digital era,” Khalife said, as quoted by Bitcoin.com, Thursday (8/15/2024).

A virtual event ahead of the announcement by ICAEW and the UAE Banking Federation reportedly highlighted the potential for CBDCs to transform banking operations and stressed the inevitability of financial digitalization.

UAE Bank Federation Director General Jamal Saleh, who was also a panelist, said the UAE is making progress in CBDC and artificial intelligence (AI).

However, he cautioned that embracing digital assets requires strong cybersecurity and collaboration across departments.

“Through joint efforts, such as our collaboration with ICAEW, and constant upskilling, companies can achieve secure and compliant digital asset integration,” Saleh said.

Meanwhile, panelists also discussed the lack of a standard accounting framework for digital assets and its impact on investor confidence. They urged organizations to develop robust accounting practices and establish a clear framework.

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