Three Abu Dhabi based financial entities plan on launching a stablecoin that will be fully regulated by the central bank of the United Arab Emirates and will be backed by the dirham–the Emirates’ currency. According to WAM, sovereign wealth fund, ADQ along with UAE’s largest lender, First Abu Dhabi Bank PJSC and International Holding Co will be the founding partners of the new stablecoin which is subject to regulatory approval.
This stablecoin will be used as a reliable digital currency by citizens, businesses & institutions for everyday purposes. It will also put the UAE at the forefront of global blockchain innovation while strengthening the gulf nations digital infrastructure. The move could have a significant impact on various industries, including finance, commerce and trade.
The new stablecoin will operate on the ADI blockchain which is a cutting-edge technology developed by the ADI Foundation in the UAE. It helps connect established financial systems with next generation blockchain technology to create real-world impact. The foundation already has strategic partnerships with governments in over 20 countries
Guillaume de La Tour, CEO of ADI Foundation says that “By leveraging the ADI blockchain, we are enabling secure, transparent, and efficient transactions at scale — built on technology developed right here in the UAE”.
A Bloomberg report quoted Hana Al Rostamani, the Group Chief Executive Officer at FAB saying– “The new stablecoin represents a transformative step forward and will revolutionise the way both consumers and businesses engage with trusted blockchain payments in the UAE.”
Also read: Stablecoins pose financial stability risks, warns bank of England governor
The new stablecoin will revolutionize the ease of making payments and doing business, both locally and globally. In December, the UAE’s central bank approved AE Coin, also backed by the dirham. These launches mark an important step towards realising the UAE’s vision of becoming a leading hub for innovation and financial technology.