The Central Bank of the UAE (CBUAE) has given in-principle approval to AED Stablecoin’s AE Coin, putting it on track to become the country’s first regulated stablecoin if it earns final approval, according to a press release. The blockchain-securitized AE Coin could be used as a payment solution by both individuals and institutions, AED Stablecoin said.

Uh, Enterprise, what is a stablecoin? Stablecoins are digital tokens pegged to the value of fiat currencies like the USD. They can be used for both payments and crypto trading.

AE Coin in detail: It is pegged to fiat currency and backed by reserves and regular audits, aiming to reduce the volatility of traditional cryptocurrencies. AED Stablecoin says it’s looking to integrate its AE Coin into e-commerce payment platforms and mobile wallets, among other applications.

Other issuers are waiting in the queue: Currently pending regulatory review and approval, ADX-listed crypto miner Phoenix Group and cryptocurrency giant Tether plan to launch an AED-pegged stablecoin fully backed by liquid UAE-based reserves and accessible globally.

REMEMBER- The Abu Dhabi Global Market published draft regulations to allow the issuance of stablecoins after the Dubai Financial Services Authority brought out more permissive regulations. The Central Bank of the UAE’s board also greenlit the introduction of a licensing and regulatory system for stable cryptocurrencies.

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