The United Arab Emirates take a new stage in their ambition to become a world hub of cryptocurrencies. The Sovereign Fund of Abu Dhabi Adq, the International Conglomerate Holding Company (IHC) and the First Abu Dhabi Bank (FAB) announced their collaboration on Monday to create a stablecoin backed in the Dirham, entirely regulated by the Central Bank Emirati.
In short
- The Sovereign Fund ADQ, the Conglomerate IHC and First Abu Dhabi Bank (FAB) launch a stablecoin leaning against the Dirham of the United Arab Emirates.
- This project will be fully regulated by the central bank of the United Arab Emirates.
- This initiative is part of the wider strategy of the country aimed at becoming a world center for digital assets.
- The stablecoin will operate on the ADI blockchain and will be used for daily transactions.
A new national stable to revolutionize payments
On Monday, April 28, three heavyweights from Emirati finance officially announced their joint stablecoin project backed by dirham.
The Sovereign Fund ADQ, the IHC conglomerate and the First Abu Dhabi Bank, the country's first bank in terms of assets, have revealed their ambition to revolutionize digital payments in the region.
This new stablecoin will be issued by Fab, subject to the regulatory approval of the central bank of the United Arab Emirates.
According to Hana Al Rostamani, Director General of the Fab group, this initiative ” represents a transformative step and will revolutionize the way in which consumers and companies interact with the blockchain payments of confidence in the United Arab Emirates ».
The technology will be based on the ADI blockchain, developed by the ADI Foundation which has already established partnerships with more than 20 governments to extend its compliant network.
The targeted applications go beyond simple payments and include current consumption transactions to artificial intelligence processes.
An ambitious national strategy for digital assets
This initiative is part of a broader approach of the United Arab Emirates to establish itself as a world hub of cryptos.
The country quickly progressed in its digital currency strategy, with the launch of the “Dirham Digital” initiative in March 2023 and the implementation of specific regulations for Stablecoins.
While we are moving towards an increasingly digital and connected economy, Stablecoin will provide a secure, efficient and scalable solution.
Mohamed Alsuwaidi, Managing Director and CEO of the ADQ group
This is not the country's first foray into this area. Indeed, last December, the AE Coin became the first regulated digital currency approved to the United Arab Emirates.
At the same time, TETHER, transmitter of the largest stable coin, also received authorization to develop a stablecoin in the region in August 2023.
According to Vugar Usi Zade, Bitget Coo, ” This initiative, supported by the central bank of the United Arab Emirates, could considerably strengthen confidence in digital assets throughout the MENA region, in particular for private and institutional users ».
This stablecoin should have a significant impact on finance, trade and exchanges to the United Arab Emirates, thus consolidating the position of the country as a pioneer of financial innovation in the Gulf.
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