ICAEW and UAE Banks Federation join forces to guide firms in digital currency adoption

Dubai, United Arab Emirates: The Institute of Chartered Accountants in England and Wales (ICAEW) recently partnered with the UAE Banks Federation (UBF) to help companies navigate the rapidly evolving digital assets landscape, a market projected to reach $80,080 million by 2024[1]. This initiative coincides with the UAE’s advanced pilot of Central Bank Digital Currencies (CBDCs), positioning the nation at the forefront of financial innovation.

CBDCs are digital forms of a country’s sovereign currency, issued and regulated by the central bank. They are designed to work alongside traditional physical currencies, offering a secure and efficient method of digital transactions. The UAE is one of only 36 countries in the world currently piloting their use[2].

During a recent joint virtual event, ICAEW and UBF convened a panel of experts to explore the dynamic landscape of the UAE’s digital currencies. The discussion aimed to equip industry professionals with essential knowledge and best practices to navigate this evolving ecosystem. Panellists included:

• Jamal Saleh, Director General, UAE Banks Federation (UBF)
• Asim Rasheed, Group Financial Controller, ENBD
• Gautam Dutta, Global Head of Cash Product Management and Innovation, FAB
• Ian Pettigrew, Director – Treasury Solutions Group, Global Payments Solutions, HSBC Bank Middle East
• Reuben Wales, Head of Financial Services, ICAEW

The panel emphasised the inevitability of complete financial digitisation, with the UAE already leading in AI adoption. They highlighted the revolutionary potential of CBDCs in transforming banking operations, offering stability and security backed by central banks. Unlike volatile cryptocurrencies, CBDCs provide a trustworthy digital alternative to fiat currency, promoting financial inclusion and enhancing traceability to combat financial crime. 

However, the experts also addressed the challenges accompanying this digital shift. As digitisation and AI adoption increase, so does the risk of cybercrime, necessitating robust security measures. Malicious actors are constantly innovating new ways to exploit vulnerabilities and steal sensitive financial data. The panel urged organisations to continuously improve their cybersecurity measures to protect against these growing threats.

Another key focus was the absence of a standardised accounting framework for digital assets, which can lead to inconsistencies in reporting, impacting investor confidence and potentially complicating regulatory compliance. Panellists encouraged organisations to proactively develop robust accounting practices and called for industry-wide collaboration to establish clear, consistent frameworks. They emphasised the importance of seamless cooperation between IT, audit, and finance functions within organisations to effectively manage digital assets and ensure secure, compliant integration, as well as the need to strengthen capabilities and expertise among teams.

The discussion also highlighted the UAE’s significant global position, accounting for 5-10% of global digital asset trading volume. This underscores the nation’s growing importance in the global digital finance landscape and its potential to shape future developments in this sector.

Hanadi Khalife, Head of Middle East at ICAEW, said: “The UAE is setting a global standard with its proactive adoption of CBDCs. Our partnership with the UAE Banks Federation is testament to our commitment to guiding this transformation. Accountants play a crucial role in ensuring organisational compliance and success in this new digital era.”

Jamal Saleh, Director General of UAE Banks Federation, said: “The UAE’s progressive approach to CBDCs and AI places it at the forefront of financial innovation. Embracing digital assets presents vast opportunities, but it also requires robust cybersecurity measures and interdepartmental collaboration. Through joint efforts, such as our work with ICAEW, and constant upskilling, companies can achieve secure and compliant integration of digital assets.”

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Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 202,000 members and students around the world.

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[1] https://www.statista.com/outlook/dmo/fintech/digital-assets/worldwide 
[2]https://www.atlanticcouncil.org/cbdctracker/#:~:text=19%20of%20the%20Group%20of,the%20Bahamas%2C%20Jamaica%20and%20Nigeria