- The Central Bank of the UAE approved the first AED stablecoin on October 13, 2024.
- Al Maryah Bank will issue the stablecoin, pegged to the UAE dirham.
The Central Bank of the UAE has granted in-principal approval for the first AED stablecoin. Furthermore, this milestone, announced on October 13, 2024, marks a significant advancement in the UAE’s digital currency landscape. The stablecoin will be pegged to the UAE dirham, aiming to provide stability for digital transactions.
Al Maryah Bank, the issuer of this inaugural token, has partnered with various stakeholders. Additionally, these collaborations will ensure a secure and compliant launch. The bank has emphasized the importance of adhering to regulatory standards. However, the Central Bank’s approval aligns with the UAE’s broader strategy to enhance its digital economy.
Regulatory Considerations of the AED Stablecoin
The stablecoin is expected to streamline payment processes for businesses and individuals. By facilitating cross-border transactions, it aims to reduce costs and enhance efficiency. Moreover, the introduction of the AED stablecoin may promote financial inclusion, providing unbanked populations with access to digital financial services.
Governor Khaled Mohamed Balama highlighted the importance of this initiative in enhancing financial stability. He stated that the stablecoin could position the UAE as a leader in the evolving landscape of digital currencies. Additionally, the Central Bank plans to work closely with industry players to establish a regulatory framework that supports the stablecoin’s operation. This framework will include guidelines for anti-money laundering and counter-terrorism financing.
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