crypto-news-flash.com
- The UAE’s Central Bank has approved the launch of AE Coin, a regulated AED stablecoin backed by real assets.
- Ripple’s presence strengthens as XRP is classified as a bridge currency, and AE Coin boosts local digital payments.
By approving in principle the AED stablecoin, the Central Bank of the United Arab Emirates (CBUAE) has made a significant step toward including stablecoins into its financial system.
Named AE Coin, this stablecoin will be linked to the UAE dirham, providing the area with a fully controlled digital asset, as we previously reported.
In line with its Digital Government Strategy 2025, this move shows the UAE’s will to increase its place in the worldwide digital economy. Unlike speculative coins, AE Coin is supposed to be stable, and it is a good choice for regular payments and local transactions.
It was documented months ago that the first phase of implementing a CBDC in the UAE was completed in mid-2024. 📝
The project has now advanced to the next phase, with the Central Bank of the UAE officially approving the AED stablecoin.✅
Staying ahead.😶🌫️ https://t.co/TeWhoXNR4q pic.twitter.com/0g0qg62qIR
— SMQKE (@SMQKEDQG) October 15, 2024
Strict Regulations Ensure Stability and Investor Confidence
This clearance comes after the UAE’s Payment Token Service Regulation, which lays strict rules for stablecoin issuers, was recently adopted. These rules stress the requirement of stability and call for all stablecoins to be supported by actual assets like cash or safe investments like UAE government bonds.
The UAE wants to safeguard its financial system and encourage innovation by requiring these rigorous policies, therefore safeguarding its system. Furthermore, this clarity of regulations is projected to draw institutional and individual investors to the UAE, therefore confirming its centrality for digital assets.
The acceptance of AE Coin marks not only a significant development for nearby companies but also affects the worldwide crypto industry in a more general sense. UAE businesses, especially those engaged in luxury products and real estate, have long looked for a consistent digital tool to enable high-value transactions.
AE Coin’s launch will expedite these exchanges and simplify them, so saving more money. Moreover, this could increase the use of digital payments all throughout the UAE, thereby helping consumers as well as stores.
Ripple’s Growing Role in UAE Blockchain Landscape
Ripple’s influence in the UAE keeps increasing since XRP has already been designated as a bridge currency. Reflecting the UAE’s dedication to blockchain innovation, Ripple also became the first blockchain-based enterprise licensed by the Dubai Financial Services Authority (DFSA).
These changes are especially important since the UAE bills itself as a leader in digital banking and has laws that strike a balance between security and innovation.
The acceptance of AE Coin also heralds the start of what many hope to be a more general movement toward a Central Bank Digital Currency (CBDC) in the UAE. Although the nation has already investigated cross-border payments made with digital currencies, the broad acceptance of a CBDC could improve the UAE’s competitiveness in worldwide payments.
Basically, the AE Coin and the possible CBDC projects complement the UAE’s larger objective of diversifying its economy outside oil, therefore confirming its leadership in the developing digital asset sector.