منصور بن زايد يُجري أول معاملة دفع رقمية للبنك المركزي بين الإمارات والصين
The United Arab Emirates and the People’s Republic of China have taken a monumental step forward in strengthening their financial ties with the launch of “JASR” (Bridge), a pioneering platform for cross-border payments using Central Bank Digital Currencies (CBDCs). This initiative, spearheaded by His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court, and witnessed by key financial leaders, marks a new era in payments between the UAE and China, promising increased efficiency, reduced costs, and enhanced security. The move underscores the UAE’s commitment to innovation in the financial technology (FinTech) sector and its ambition to become a global hub for digital finance.
A Landmark Achievement in UAE-China Financial Cooperation
The inauguration of “JASR” took place at Qasr Al Watan in Abu Dhabi, with the presence of Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Pan Gongsheng, Governor of the People’s Bank of China. His Highness Sheikh Mansour bin Zayed personally executed the first live payment transaction utilizing the CBDCs through the platform, officially signaling its operational readiness. This event was accompanied by a ceremony celebrating the successful interconnection of financial infrastructures between both nations, a culmination of dedicated efforts over a significant period.
This collaboration builds upon a foundation of robust economic relations between the UAE and China. The increasing volume of trade and investment necessitates a streamlined and modern payment system, something this new platform aims to deliver. The participation of several Emirati and Chinese banks in the initial phase signifies a broad industry buy-in and a commitment to the platform’s success.
How “JASR” is Revolutionizing Cross-Border Payments
The core function of the “JASR” platform is to facilitate smoother cross-border payments between the UAE and China. Traditionally, international payments can be slow, expensive, and involve multiple intermediaries. “JASR” bypasses many of these hurdles by leveraging the power of CBDCs and direct connections between the nations’ financial systems.
Several key benefits are projected from the implementation of “JASR”:
Reduced Transaction Costs
By eliminating intermediary banks and streamlining processes, the platform aims to significantly lower the costs associated with international money transfers. This is particularly beneficial for businesses engaged in trade between the two countries.
Immediate Settlement
Unlike conventional payment methods, “JASR” offers near-instantaneous settlement of transactions, improving cash flow and reducing risks for both senders and receivers.
Enhanced Security
Utilizing the inherent security features of CBDCs and advanced encryption protocols, the platform ensures a secure and reliable payment environment, minimizing the potential for fraud.
Moreover, the interconnection between the UAE’s Instant Payment System (IPS) and China’s Internet Banking Payment System (IBPS) allows for 24/7 real-time fund transfers, catering to the dynamic needs of businesses and individuals. Specific use cases highlighted include student remittances, payments from Chinese residents in the UAE, and international trade settlements.
The Launch of the “Jion-UnionPay” Dual-Card System
Adding to the momentum of financial integration, the launch of a dual-card system named “Jion-UnionPay” was also announced. This represents another significant milestone, integrating the UAE’s domestic payment network, “JION,” with China’s “UnionPay.” The card, issued in collaboration with Lari Exchange, allows for wider global acceptance through the extensive UnionPay network, which spans over 180 countries.
This digital currency initiative ensures that transactions made within the UAE are processed locally, further enhancing security and efficiency. The “Jion-UnionPay” card is expected to simplify payments for tourists, expatriates, and businesses alike, bolstering economic activity and strengthening bilateral ties. This also makes the UAE more accessible and attractive to Chinese tourists and investors.
Sheikh Mansour Bin Zayed’s Vision for a Digital Future
His Highness Sheikh Mansour bin Zayed Al Nahyan emphasized the strategic importance of these developments, stating that they “embody the depth of the strategic relationship between the UAE and the People’s Republic of China and open up new horizons for economic, financial, and technological cooperation.”
He further highlighted that the launch of “JASR,” the IPS-IBPS interconnection, and the “Jion-UnionPay” card are concrete steps towards building a modern and secure financial infrastructure. This infrastructure, he believes, will foster innovation, facilitate international payments, and enhance the UAE’s competitiveness as a global leader in FinTech. The vision is clear: to position the UAE at the forefront of the digital economy.
Strengthening Partnerships Through a Memorandum of Understanding
To solidify the commitment to ongoing collaboration, Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Pan Gongsheng, Governor of the People’s Bank of China, signed a Memorandum of Understanding (MoU). This agreement outlines a framework for increased cooperation in the realm of cross-border payments, financial infrastructure development, and the pursuit of joint strategic initiatives.
The MoU signifies a long-term dedication to strengthening the partnership between the two countries and fostering a more interconnected and efficient global financial system. Further expansion of the “JASR” platform is anticipated, with plans to onboard additional central banks by 2026, promising even greater economic benefits and solidifying the UAE’s role as a key player in the rapidly evolving landscape of international finance.
In conclusion, the launch of “JASR” and the associated initiatives represent a transformative moment in the financial relationship between the UAE and China. By embracing cutting-edge technology and fostering closer collaboration, both nations are paving the way for a more efficient, secure, and interconnected future. This bold move positions the UAE as a regional and global leader in FinTech innovation and reinforces its commitment to driving economic growth and prosperity through secure digital payments. This development is poised to attract further investment and collaboration, cementing the UAE’s position as a vital hub in global trade and finance.
