{"id":96386,"date":"2024-10-14T10:47:04","date_gmt":"2024-10-14T14:47:04","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=96386"},"modified":"2024-10-14T11:34:36","modified_gmt":"2024-10-14T15:34:36","slug":"uae-central-bank-grants-approval-to-aed-stablecoin","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/uae-central-bank-grants-approval-to-aed-stablecoin\/","title":{"rendered":"UAE Central Bank Grants Approval to AED Stablecoin"},"content":{"rendered":"\n

The Central Bank of the United Arab Emirates (CBUAE) has granted in-principle approval to AED Stablecoin under its Payment Token Service<\/a> Regulation framework.<\/p>\n\n\n\n

\"UAE
UAE Central Bank Grants Approval to AED Stablecoin <\/figcaption><\/figure>\n\n\n\n

AED Stablecoin is now a leading contender in the competition to become the first issuer of a regulated dirham-pegged stablecoin in the UAE, following the preliminary license approval.<\/p>\n\n\n\n

The recent release of the CBUAE's licensing framework, which prohibits using crypto for payments unless they involve licensed dirham-pegged tokens, has led to concerns regarding prospective restrictions on crypto payments. This development has alleviated these concerns.<\/p>\n\n\n\n

If approved, AED Stablecoin's AE Coin could function as a local trading pair for cryptocurrencies in exchanges and decentralized platforms, enabling merchants to accept it as payment for goods and services.<\/p>\n\n\n\n

The licensing framework of the central bank also prohibits algorithmic stablecoins and privacy tokens in favor of entirely cash-backed assets.<\/p>\n\n\n\n

The stablecoins issued by the issuers must be backed by cash in a separate escrow account that is entirely denominated in dirhams and located within a UAE bank.<\/p>\n\n\n\n

Alternatively, they may maintain at least 50% of their reserve assets in cash. At the same time, the remaining fraction is invested in UAE government bonds \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>and CBUAE Monetary Bills with an average duration of up to six months.<\/p>\n\n\n\n

Tether, the issuer of the world's largest stablecoin by market capitalization, USDT, is anticipated to compete with AED Stablecoin.<\/p>\n\n\n\n

\"\"
Tether\u2019s USDT leads all stablecoins as it nears $120 billion market capitalization. Source: CoinGecko<\/figcaption><\/figure>\n\n\n\n

Tether has recently announced that it has partnered with Phoenix Group and Green Acorn Investments, two local firms, to introduce its stablecoin anchored to the dirham.<\/p>\n\n\n\n

In contrast, the UAE's regulatory framework has attracted significant participants due to its crypto-friendly nature.<\/p>\n\n\n\n

After obtaining a full license, OKX recently launched a retail and institutional trading platform in the UAE. This platform features derivatives trading<\/a> for qualified institutional investors.<\/p>\n\n\n\n

Furthermore, the crypto exchange M2 has implemented a new system that enables residents to convert dirhams directly into Bitcoin (BTC) and Ether (ETH).<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Central Bank of the United Arab Emirates (CBUAE) has granted in-principle approval to AED Stablecoin under its Payment Token Service Regulation framework. AED Stablecoin is now a leading contender in the competition to become the first issuer of a regulated dirham-pegged stablecoin in the UAE, following the preliminary license approval. The recent release of […]<\/p>\n","protected":false},"author":12,"featured_media":51137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[22338,1103,1394],"class_list":["post-96386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-aed-stablecoin","tag-tether","tag-uae"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/06\/uae-central-bank.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/96386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=96386"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/96386\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/51137"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=96386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=96386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=96386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}