The United Arab Emirates expect their digital Digital Bank Digital Bank to start out within the fourth quarter of 2025.
According to a report within the Khaleej Times, the governor of the United Arab Emirates, Khaled Mohamed Balama, said that the blockchain -based currency could improve financial stability and contribute to combating financial crime. According to the report, the retail sector could expect a digital dirham to be issued within the last quarter of 2025.
“It [digital dirham] will further enable the event of revolutionary digital products, services and latest business models, at the identical time reduce costs and increase access to international markets, ”said Balama.
The report also found that the digital dirham and its physical counterpart in all payment channels are accepted as a payment method.
The message comes when the digital dirham received a rebrand. The first letter from the dirham can be its international symbol, along with two horizontal lines that represent the steadiness of the currency, inspired by the flag of the United Arab Emirates.
The latest symbol for Vae -Dirhams. Source: Khaleej Times
The strategy to digital dirhams within the United Arab Emirates
In June 2024, the CBUAE approved a license framework for the regulation of stable coins. In a gathering with the CBUAE board of directors in Abu Dhabi, officials from the United Arab Emirates discussed the federal government's financial infrastructure program and approved the framework. The latest rules have clarified the output, licensing and supervision of payment sticks supported by the VAE Dirham.
After approval of the framework, StableCoin Emittent Tether announced his plans to start out a stable coin supported by Dirham with the local partners Phoenix Group and Green Acorn Investments. The cooperation goals to find out a totally reset digital representation of the Dirham currency of the United Arab Emirates.
After approval of frame, other players joined the race to create a stable coin supported by Dirham. On October 18, 2024, an organization called AED Stablecoin received a fundamental approval for the difficulty of a regulated dirham-peged stablecoin within the VAE.
On November 1st, the Open Network (sound) announced that Thers Dirham-Egged StableCoin can be began in his blockchain network.
Stable coins within the VAE
In addition to the dirham supported by Dirham, US dollars and euros also won stable coins within the country.
On February 24, the Dubai Financial Services Authority, the Independent Supervisory Authority of the Dubai International Financial Center (DIFC), USDC and EURC recognized as the primary stable coins under its crypto token regime.
In the meantime, a Ripple spokesman CoinTelegraph said that the corporate is working on understanding the country's StableCoin requirements. The spokesman said that they’re closely monitoring the developments and that their Rlusd StableCoin is out there within the VAE.
