Abu Dhabi, UAE – Local banks and financial institutions have recently taken serious steps to align with the UAE’s vision of a financial system ready for the future.
This is done by launching stable currencies backed by the UAE dirham.
Stablecoins are characterized by the fact that they can be responsibly integrated into the financial system when they are designed in accordance with strict regulatory frameworks and advanced risk management standards.
It also embodies a fundamental step towards aligning institutional finance with the evolving digital economy based on digital assets.
A stablecoin is defined as a class of encrypted currencies that derives its value and aims to maintain it through a mechanism known as the “binding price”, which is the target value of the currency.
Stablecoins aim to maintain remarkable price stability over time, and this feature makes them a suitable tool for conducting daily transactions and facilitating cross-border payments.
As well as being used as a tool to hedge against price fluctuations of other cryptocurrencies.
Stablecoins also serve as a vital bridge between traditional financial systems and the growing world of crypto digital assets.
It combines the fundamental advantages of blockchain technology (blockchain) –such as decentralization, high transparency, and ultimate stability of transactions – with the characteristic of low levels of price volatility.
This is compared to other types of cryptocurrencies.
digital infrastructure
Global Holding Company, Sirius International Holding, and First Abu Dhabi Bank announced that the stable digital currency backed by the UAE dirham “DDSC” has obtained the approval of the UAE Central Bank, allowing its official launch.
This is in a step that constitutes a turning point in the path of organized digital finance in the UAE
The new currency is based on ADI’s blockchain network, an advanced layer 2 technology developed by the Abu Dhabi-based organization.
The stablecoin “DDSC” is designed to be a digital financial instrument compatible with regulatory frameworks, and intended for institutional and governmental uses.
This enables support for high-value applications within a reliable regulatory framework, including payments and collections, high-value settlements, and treasury management operations.
In addition to trade flows, supply chains, and programmable financial services for regulated entities.
This currency is expected to be made available to First Abu Dhabi Bank customers through a number of approved platforms.
To support corporate and institutional uses, while adhering to the highest standards of compliance, transparency, and operational integrity.
The launch of DDSC strengthens the UAE’s position at the forefront of the regulated digital finance landscape, and reflects the increasing maturity of stablecoins as an essential component of modern financial infrastructure.
growth of the digital economy
Al Maryah Local Bank confirmed that the AEC Wallet (AEC Wallet) has obtained the approval of the Central Bank of the Emirates to recharge the AE Coin balance via encrypted currency settlement.
This is in accordance with the Central Bank’s payment regulations and compliance requirements.
Under this approval, clients of Emirates Currency Investment Company, licensed by the Capital Market Authority, will be able to open accounts in the AEC Wallet wallet, and pay using the UAE dirham immediately after settling the cryptocurrencies.
The wallet allows customers to settle digital assets in dirhams, then add their AE Coin balance directly in one step within the wallet.
The customer can then purchase any product or service on all purchasing devices (POS Terminals) spread throughout the Emirates.
For his part.. Ras Al Khaimah National Bank (RAC Bank) announced that it has obtained initial approval from the Central Bank to issue a digital payment code backed by the UAE dirham (a stablecoin).
With the aim of developing solutions designed to meet customer needs and align with the UAE’s vision of a future-proof financial system.
