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Tether stated that the new dirham-pegged stablecoin will be receive full backing from liquid reserves based in the UAE.
In a press release today, Tether announced plans to launch a stablecoin pegged to the dirham, the local currency of the United Arab Emirates. The move is in collaboration with tech conglomerate Phoenix Group and Green Acorn Investment.
The dirham-pegged stablecoin will be backed by liquid reserves in the UAE. The UAE released the Payment Token Service Regulation in June, a framework that seeks to guide the use of digital assets in the region. This was in correlation with other countries in the world seeking to maximize the growing adoption of virtual currencies.
The token joins Tether’s fleet of stablecoins. The firm has already launched currencies pegged to the US dollar (USDT), Euros (EUTR), Chinese Yuan (CNHT), Mexican Peso (MXNT), and Gold (aUSDT).
Tether Enters the UAE
Tether noted that the dirham-pegged stablecoin would provide users with a seamless and cost-effective way of accessing the currency while providing a hedge against inflation. Furthermore, the stablecoin will “streamline international trade and remittance,” reducing transaction fees.
Speaking about the new development, Tether’s CEO, Paolo Ardoino, expressed his pleasure, noting that the UAE was becoming a global economic hub. He also believes that the dirham-pegged stablecoin would provide options for investors in the country.
“Tether’s Dirham-pegged stablecoin is set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the United Arab Emirates Dirham,” Ardoino said.
The UAE has shown an appreciable affinity towards cryptocurrencies compared to most countries, like the United States. A court based in the UAE recently recognized cryptocurrency as a payment option for salaries, marking a new milestone for digital assets in the Asian country.