IHC, ADQ, and First Abu Dhabi Bank (FAB) have announced the intention to launch a new stablecoin pegged to the Dirham (AED). The new digital currency issued by First Abu Dhabi Bank will travel on the ADI blockchain and will be regulated by the Central Bank of the UAE (CBUAE).
Abu Dhabi: the announcement that the UAE will launch its new stablecoin pegged to the Dirham
In Abu Dhabi, the institutional giants IHC, ADQ, and the First Abu Dhabi Bank (FAB) have announced the intention to launch the new stablecoin pegged to the UAE Dirham.
In practice, the new stablecoin will be completely regulated by the Central Bank of the UAE (CBUAE) and issued by the largest bank in the United Arab Emirates, FAB, subject to regulatory approval.
According to what has been stated, the new stablecoin will aim to facilitate payments and conduct business, both locally and globally. Moreover, the idea is that payment with the stablecoin can allow identity, governance, and value to flow freely, securely, and verifiably.
The new stablecoin of the UAE will be used as a reliable digital currency in a wide range of daily scenarios, by citizens and consumers, businesses and institutions.
Furthermore, the project plans to be able to support emerging digital use cases, such as machine-to-machine and AI.
Abu Dhabi: the new UAE Dirham stablecoin will travel on ADI blockchain
Another significant detail revealed by the institutional giants about the new stablecoin pegged to the UAE Dirham is that it will travel on the ADI blockchain.
This is a blockchain developed by the Fondazione ADI in the UAE, with the aim of providing a compliant distribution network for payments on blockchain.
The ADI Foundation connects established financial systems with next-generation blockchain technology to create an impact on the real world. In this way, citizens of emerging countries can compete and operate on a global scale, something that would have previously been impossible. The ADI Foundation has already formed strategic partnerships with the governments of over 20 countries.
In this regard, S.E. Mohamed Hassan Alsuwaidi, CEO of ADQ, stated:
“The launch of the stablecoin marks a fundamental step in our commitment to strengthen the digital infrastructure ecosystem of the UAE. As we move towards an increasingly digital and connected economy, the stablecoin will provide a secure, efficient, and scalable solution, while simultaneously creating new opportunities for growth and value creation.”
The symbol of the digital Dirham
Last month, the CBUAE had also unveiled the symbol of the Dirham, both digital and physical, as an initiative that demonstrates the progress of the UAE national currency digitalization program.
This is a letter “D” that incorporates two horizontal lines representing the stability of the country’s currency and is inspired by the UAE flag.
The symbol then sees the presence of a circle that surrounds it, using the colors of the UAE flag to reflect national pride and identity.
Also on that occasion, the CBUAE had presented the integrated platform for the issuance, circulation, and use of the currency in its digital format.
The idea of the CBUAE is that the new stablecoin pegged to the UAE Dirham will be issued by the last quarter of 2025 for the retail sector.