The United Arab Emirates (UAE) has set a significant milestone in the digital financial sector by launching its first dirham-backed stablecoin ‘AE Coin’. The initiative comes under the UAE’s new cryptocurrency regulation strategy, which aims to establish the country as a global crypto hub.
Table of Contents
- AE Coin: A Symbol of Stability and Security
- New Regulation Policy Explained
- Tether’s Entry into the UAE Market
- AE Coin’s Role in the UAE’s Digital Economy
- Implications for Global Crypto Adoption
- Conclusion
AE Coin: A symbol of stability and security
‘AE Coin’ has received full approval from the Central Bank of the UAE (CBUAE), making it the country’s first fully regulated dirham-backed stablecoin. Each AE Coin is backed by UAE dirhams at a ratio of 1:1, ensuring its price stability.
New Regulation Policy: Only dirham-backed stablecoins allowed for payments
The UAE’s central bank announced the new stablecoin regulation policy in July 2024, which will take effect from June 2025. Under this policy, only dirham-backed stablecoins will be allowed for payments in the country, while cryptocurrencies such as Bitcoin and Ethereum are restricted to trading and investment only.
Join The Quantitative Elite Community here: The Quantitative Elite on Skool
Tether’s Plans: Launching Dirham-Backed Stablecoin in the UAE
Cryptocurrency company Tether announced in August 2024 that it plans to offer a new stablecoin pegged to the UAE dirham, to meet the growing demand for the Gulf currency and provide an alternative to the US dollar.
AE Coin’s Role in the Digital Economy
The launch of AE Coin will boost the UAE’s digital economy. It will enable crypto payments in sectors such as e-commerce, real estate, and education. Moreover, it will facilitate faster and lower-cost transactions than the traditional banking system.
Future Direction
With the launch of AE Coin, the UAE has made clear its commitment to the digital financial sector. This initiative is a significant step towards establishing the country as a global crypto hub, setting an example for other countries to follow.
Grab your copy of Practical Python for Effective Algorithmic Trading here: Amazon – Practical Python for Effective Algorithmic Trading