UAE Central Bank Gives Preliminary Approval to Launch Dirham-Based Stablecoin

The CBUAE has given AED Stablecoin preliminary approval to issue a dirham-based stablecoin, AE Coin, under the Payment Token Services Regulations, Gulf Today reports.

The firm has emerged as a frontrunner in the race to become the first issuer of a regulated stablecoin pegged to a local currency.

If fully approved, AE Coin could potentially become a unit of account for cryptocurrency pairs on CEX and DEX, as well as a means of payment among merchants.

The FSRA proposal calls for the market capitalization of stablecoins to be equal to the value of the reserves at the end of each business day.

Issuers are required to maintain separate collateral pools for stablecoins based on different currencies. The guidelines provide for a fixed price for the tokens in fiat. The asset holder will be able to redeem the coin for this amount. $BTC $BNB $SOL