3 min read
AED Stablecoin LLC has received preliminary approval from the Central Bank of the UAE to issue its stable digital currency, AE Coin.
This initiative falls under the ‘Payment Token Services Regulation’ (Circular No. 2/2024) that enables AED Stablecoin to launch the first dirham-pegged stablecoin of the UAE in line with the country’s vision and the UAE Digital Government Strategy 2025.
As a fiat-backed stablecoin, each AE Coin is fully supported by the UAE dirham, combining the agility of blockchain technology with the reliability of traditional technology. The introduction of AE Coin promises to provide seamless and secure payment methods that will support the UAE’s rapidly growing digital economy.
AE Coin stands out as the first and only digital currency in the UAE that has been approved by the Central Bank. AE Coin is backed by the UAE dirham; this means that it is stable and has clear reserves and audits, a common problem with most cryptocurrencies is volatility. Also, AE Coin works in conjunction with decentralized finance (DeFi) platforms where people can lend, borrow, and earn interest directly without intermediaries.
Utilizing advanced blockchain technology and multi-layer encryption, AE Coin provides safe and secure transactions with complete compliance. This commitment also increases the trust of users in the digital financial ecosystem.
AE Coin’s plan involves enabling safe payment processing in all online stores, developing a mobile application for easy access to funds, and pursuing partnerships with merchants for digital currency.
The General Manager of AED Stablecoin, Ramez Rafeek, stated, “We are very pleased to have received the approval of the Central Bank of the UAE to start issuing AE Coin, by the ‘Payment Token Services Regulation’ Circular. As the first-ever stablecoin regulated by the Central Bank of the UAE, AE Coin will revolutionize the digital currency landscape, providing users with an unparalleled blend of financial freedom, unwavering stability, and top-tier security.”
AE Coin is ready to revolutionize the financial industry by providing an opportunity for transparent and cheap financial transactions for everyone, for companies and private persons. It is to be utilized in payments, DeFi solutions, and many other services that allow for fast and inexpensive transactions while being under the Central Bank’s supervision.
AE Coin has proposed a perfect combination of stability and security for different purposes. AE Coin can help UAE based companies make instant and stable payments in their operations hence enhancing cash flow and minimizing on transaction costs. However, for those who are in search of a safe and easy to use digital currency for their daily use, then AE Coin will be of help. It also makes domestic transfers easier, and at a lower cost than the traditional banking channels.
AE Coin provided by AED Stablecoin LLC is a major step forward towards the development of digital finance in the UAE. With the country now entering this new and exciting financial technology age, the introduction of AE Coin coupled with other on-going regulatory changes mean that the future for digital assets in the region is bright.
