China and UAE complete first cross-border digital currency payment

China and the United Arab Emirates have jointly completed their first-ever cross-border payment using central bank digital currency, or CBDC, via the JISR network, marking a breakthrough in global financial innovation and bilateral financial cooperation.

The historic payment was finalized this past week during a visit by Pan Gongsheng, governor of the People's Bank of China, to Abu Dhabi, with Sheikh Mansour bin Zayed Al Nahyan, vice-president, deputy prime minister and chairman of the board of directors of the Central Bank of the UAE, conducting the inaugural transaction, the UAE's official news agency WAM reported.

"These advanced initiatives reflect the depth of the strategic partnership between the UAE and the People's Republic of China, and open new horizons for economic, financial and technological cooperation," Mansour said.

The JISR platform, established with the participation of banks from both countries, aims to facilitate cross-border payments, significantly reduce transaction costs and enable instant settlement. It is expected to expand further in 2026 with the addition of more participating banks.

During the visit, officials also witnessed the interlinking of the UAE's Instant Payment System with China's Internet Banking Payment System. The integration will enable secure, real-time financial transfers between the two countries at any hour of the day.

This linkage will support a wide range of use cases, including scholarship transfers for Emirati students in China, remittances for Chinese residents in the UAE, and cross-border commercial transactions between enterprises of the two nations, WAM reported.

The event also witnessed the launch of the "Jaywan–UnionPay" multi-scheme prepaid card. Issued in partnership with Lari Exchange, the card integrates the two systems to enable wider global acceptance via UnionPay's international network spanning over 180 countries, while ensuring local transaction processing when used within the UAE.

Pan and Khaled Mohamed Balama, governor of the Central Bank of the UAE, also signed a Memorandum of Understanding aimed at strengthening cooperation in cross-border payments, developing financial infrastructure, and supporting joint strategic initiatives to deepen the bilateral partnership.