UAE’s newest stablecoin gets nod from Central Bank

A new stablecoin, pegged to the UAE dirham, has received regulatory approval from the country’s Central Bank. 

Dubbed ‘AE Coin’, the cryptocurrency is positioning itself as a stablecoin that is fully backed by reserves held within the UAE. 

This means that 1 AE Coin will buy 1 Dirham. 

This latest development around this stablecoin was announced by AE Coin general manager Ramez Rafeek on a LinkedIn post. 

“We are excited to announce the launch of AE Coin, the first stablecoin regulated by the CBUAE,” said Rafeek. 

“AE Coin is built on blockchain technology, and designed to provide users with stability, efficiency and security in their transactions,” he added. 

AE Coin’s launch comes amid evolving regulations for cryptocurrencies in the UAE. The central bank’s recent framework permits businesses to accept dirham-backed stablecoins for payments. 

Other digital assets, including Bitcoin and US dollar-backed stablecoins such as Tether, are excluded, except within financial-free zones. Earlier this year, Tether announced plans to launch its own dirham-backed stablecoin in future.

The new rules aim to integrate decentralised currencies into the mainstream economy while maintaining financial stability. 

AE Coin further plans to build partnerships with banks, payment gateways, and tech firms to drive adoption. 

Future initiatives include integration with decentralised applications, listings on major exchanges, and continued technological advancements.