UAE’s Crypto Tango: Dirhams, Curious Case of Payment Tokens, quite a Dash of Mystery!

Listen up, crypto enthusiasts! The United Arab Emirates (UAE) just pulled off a move that’s got the crypto world doing the cha-cha. Picture this: a moonlit desert, palm trees swaying, and a dirham in one hand while you salsa with your favorite stablecoin.

The Dirham Dance:

What Went Down? On a sunny day (because, well, it’s the UAE), the Central Bank of the UAE (CBUAE) gathered its board of directors. They sipped chai, discussed financial infrastructure, and—wait for it—approved the issuance of payment token services regulations.

Now, here’s the twist:

these regulations demand that payment tokens must waltz with UAE dirhams. No flings with other currencies allowed! 💃

Crypto Payments Ban?

Say What? Our legal maestro, Irina Heaver, spilled the tea. According to her, the UAE just dropped a beat: “No crypto payments unless they’re licensed dirham payment tokens or registered foreign payment tokens.” 🚫

But hold your horses!

The UAE has always been the life of the party—open to foreign direct investment, no capital controls, and freedom of contract.

Tether, the Secret Salsa Ingredient Guess who’s been leading the crypto conga? Tether (USDT)! It’s been the backbone of Web3 transactions, like the secret spice in grandma’s biryani. But now, with these new rules, Tether’s feeling a bit left out.

Why the UAE Did the Crypto Shuffle Here’s the scoop:

The UAE wants to waltz into the digital economy. But these rules? They’re like a DJ scratching the vinyl mid-song. Not cool!

And guess what?

The UAE lacks a crypto dance crew like Switzerland’s Crypto Valley Association. They’re all about unity, while we’re still figuring out our moves.

So, dear crypto aficionados, keep your dirhams close, your stablecoins closer, and let’s see where this tango takes us!

.....see you on the next one.....