- UAE’s central bank pre-approves AE Coin, a new stablecoin pegged to the Dirham, marking a major step in their crypto journey.
- The country is quickly expanding its use of crypto, exemplified by a $50 million digital dirham transaction to China via mBridge.
- Recent developments highlight the UAE’s growing acceptance and integration of cryptocurrencies.
The United Arab Emirates recently announced a major update that could have a significant impact on crypto in the Middle Eastern region. Just recently, the nation’s central bank announced the pre-approval of a new stablecoin – AE Coin – pegged to the UAE Dirham.
Moreover, the new currency is expected to play a pivotal role in the local economy, as soon as it goes through the rest of the regulatory steps before its full approval. Once operational, the AE Coin is expected to play a major role in shaking up how local transactions between individuals and companies work, making them faster and easier via decentralization.
AE Coin will be the first-ever UAE-regulated cryptocurrency to operate in transactions in the nation. This development expands on the United Arab Emirates’ plans to transform the region into a hub for cryptocurrencies.
UAE Expansion Into Crypto
The nation has quickly expanded its use of crypto in recent years. Just in January of this year – news arose about a cross-country transaction of over $50 million digital dirhams from the UAE Central Bank to China via using the mBridge – a platform where countries and financial institutions can send and receive digital currencies directly, in real-time.
Furthermore, in April Binance celebrated a new license to operate in Dubai, highlighting the growing acceptance and integration of cryptocurrency in the UAE.
Continuing with the region’s crypto advancements, there’s been another noteworthy development in UAE, the Dubai Financial Services Authority’s endorsement of XRP marks a pivotal moment in the crypto landscape in the region.
The support of the local regulatory body reflects the quick rise in crypto adoption by the population. This year’s “Henley Crypto Adoption Index” shows that the United Arab Emirates ranks second in public adoption (only behind the U.S.), and 8th in terms of infrastructure adoption.
