CENTRAL BANK OF THE UAE APPROVES STABLECOIN ISSUANCE‼️
The Central Bank of the United Arab Emirates (UAE) has approved the issuance of a new stablecoin pegged to the local currency, the dirham (AED). This digital asset, called AE Coin, will be used primarily for regular payments and local transactions. The launch of the stablecoin will make a significant contribution to the country’s digital economy strategy in line with the 2025 Digital Government Strategy.
The key element of trust behind the stablecoin is that these digital currencies are backed by reliable assets such as the dirham. The Central Bank of the UAE has taken important steps regarding digital currencies within the scope of the Financial Infrastructure Transformation Program (FIT) in recent months and is currently in the second phase of these steps. It is anticipated that the stablecoin will accelerate large transactions in the luxury goods and real estate sector and popularize the use of digital payments. It is also emphasized that work on the central bank digital currency (CBDC) continues in the future   .
This development is seen as an important step towards making the United Arab Emirates the center of digital assets. Thanks to the regulatory framework, investor security and financial stability will be protected and innovations will be supported.
Conclusion:
UAE's stablecoin approval is an important step that strengthens its leadership goals in the digital economy.
Sources:
• Cryptopolitan. UAE Central Bank Approves Issuance of Stablecoin Regulation. Cryptopolitan, 2024.
• Crypto News Flash. UAE Central Bank Approves Launch of AED-Pegged Stablecoin. Crypto News Flash, 2024. • Coinpri. UAE Central Bank Sets Milestone For Stablecoins. Coinpri, 2024.