29 UAE Takes a Bold Leap into the Future with its AI-driven governance strategy. In a major step towards digital financial innovation, the United Arab Emirates (UAE) Central Bank (CBUAE) has given in-principle approval to AED Stablecoin LLC for issuing AE Coin, the country’s first dirham-backed stablecoin. This move places the UAE at the cutting edge of regulated digital currency implementation, fitting into its Digital Government Strategy 2025.AE Coin: Leading Regulated Stablecoins in the UATether recently announced that it has partnered with domestic companies Phoenix Group and Green Acorn Investments to launch its own dirham-pegged stablecoin.Meanwhile, AE Coin is designed to offer the stability of the UAE dirham combined with the efficiency of blockchain technology. As a fully regulated stablecoin, it aims to provide secure and seamless payment solutions, fostering the growth of the UAE’s digital economy. The coin is fully backed by reserves held within the UAE, ensuring consistent value and minimizing the volatility typically associated with cryptocurrencies.Read more: From Hype to Hard Reality | KiloEX DEX Hacked | Bitcoin Price AnalysisRegulatory Framework and ComplianceCBUAE’s licensing regime requires stablecoin issuers to collateralize their tokens with cash in UAE banks’ segregated escrow accounts. Or issuers can keep a minimum of 50% reserve assets in cash and invest the rest in UAE government bonds and CBUAE Monetary Bills with an average maturity of up to six months. The framework bans algorithmic stablecoins and privacy tokens and prefers totally cash-backed assets in order to promote stability and security in the world of digital currencies.The AE Coin approval is a precedent in the UAE digital currency landscape. Competition, though, is looming on the horizon. Tether, the issuer of the largest stablecoin by market value, has revealed plans to create its own dirham-pegged stablecoin in partnership with UAE-based companies Phoenix Group and Green Acorn Investments. The development highlights the UAE’s increasing status as a center for digital currency innovation. In renewable energy, UAE Takes a Bold Leap by setting global sustainability benchmarks.The launch of AE Coin is set to transform financial services in the UAE by providing unprecedented stability, security, and efficiency. With the country further embracing digitalization, AE Coin is a major milestone towards a more inclusive, innovative and future-proofed financial system. As the region’s innovation hub, UAE Takes a Bold Leap in global tech leadership.
