The Central Bank of the United Arab Emirates (CBUAE) has given initial approval to AED Stablecoin, moving it closer to becoming the first regulated stablecoin pegged to the UAE dirham. This approval was granted under the CBUAE’s Payment Token Service Regulation framework.
With this preliminary approval, AED Stablecoin leads the way in creating a stablecoin tied to the dirham, which could be used in local trading and on exchanges. It also addresses concerns that arose after the CBUAE’s recent regulations restricted the use of crypto for payments, except for licensed dirham–pegged tokens.
If fully approved, AED Stablecoin’s AE Coin could serve as a trading pair for cryptocurrencies on both centralized and decentralized exchanges and enable merchants to accept it for goods and services.
Summary Review: The UAE’s central bank has granted in-principle approval to AED Stablecoin, positioning it as a potential first regulated dirham–pegged token. This approval could allow the stablecoin to be used for local crypto trading and accepted by merchants, easing concerns about restrictions on crypto payments under new regulations.
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