The United Arab Emirates (UAE) is making notable progress in the digital currency arena with the launch of dirham-backed stablecoins. The efforts are to incorporate blockchain technology into the financial system of the country, providing a stable and regulated digital currency option.
Key Partnerships for Developing Digital Currency
In a notable development, three prominent Abu Dhabi entities—ADQ, First Abu Dhabi Bank (FAB), and International Holding Co.—have announced plans to launch a stablecoin pegged to the UAE dirham. This digital currency will be overseen by the UAE’s central bank to ensure compliance with regulatory standards. The initiative is designed to facilitate faster and more secure digital payments for individuals and businesses within the UAE.
FAB’s CEO, Hana Al Rostamani, pointed to the prospects of this stablecoin in changing industries through improving the trustworthiness and speed of blockchain-based transactions. The stablecoin is poised to be applied in numerous fields of usage, ranging from future technologies such as machine-to-machine communication and artificial intelligence.
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Regulatory Approvals and Market Expansion
The UAE’s dedication to the development of a strong digital economy is also demonstrated by the Central Bank’s registration of AE Coin, the country’s first fully regulated dirham-backed stablecoin. Created by AED Stablecoin LLC, AE Coin is intended to offer a secure and stable digital currency choice, completely backed by UAE dirham reserves. This registration supports the UAE’s Digital Government Strategy 2025, which is designed to advance the country’s digital infrastructure and financial services.
Furthermore, Tether, one of the top stablecoin issuers, has revealed plans to launch a UAE dirham-pegged stablecoin. This is part of an attempt by Tether to increase its footing in the Middle East, leveraging the region’s surging demand for blockchain-linked financial solutions. The new stablecoin will be entirely reserve-backed and will be launched in partnership with Phoenix Group and Green Acorn Investment. The launch of the product awaits clearance from the UAE Central Bank.
In addition, Distributed Technologies Research (DTR), which is headquartered in Abu Dhabi, has introduced DRAM, yet another dirham-backed stablecoin. DRAM is designed to give countries facing high inflation access to a stable digital asset pegged to the UAE’s fiat currency. The stablecoin can be accessed on decentralized financial platforms such as Uniswap and PancakeSwap, making it more accessible to the global population.
These advancements highlight the UAE’s forward-thinking approach to adopting digital currencies and incorporating them into the country’s financial system. Through the promotion of innovation and the creation of a regulatory environment for stablecoins, the UAE is setting itself up as a global leader in the digital economy.
Also read: Spain Introduces First Bitcoin-Focused Master’s Program
