Can Tether's Dirham Stablecoin Increase UAE Crypto Adoption?
Crypto enthusiasts say the UAE will introduce a Dirham-pegged stablecoin alongside Tether. It will be launched with UAE-based Phoenix Group PLC and Green Acorn Investments Ltd., according to a Tether news statement today.
Tetser CEO Paolo Ardoino says, “Tether's Dirham-pegged stablecoin is set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the UAE Dirham whether for cross-border payments, trading, or simply diversifying one's digital assets.”
Tether's Dirham Stablecoin debuts in UAE
Many crypto companies have departed the US since Gary Gensler took over the SEC. UAE used the chance to rebrand as the next crypto center. Since 2023, the UAE has eased crypto usage, attracting crypto CEOs like CZ to Dubai.
Financial authorities in the UAE agreed to allow crypto trading in a Dubai economic-free zone in 2023. After that, Ras Al Khaimah ruler Sheikh Saud bin Saqr Al Qasimi announced the RAK Digital Assets Oasis (RAK DAO), an economic free zone for digital and virtual asset, blockchain, Web3, and AI enterprises, on October 19.
The UAE's Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) issued consultation paper No. 7 of 2024 to improve its regulatory framework to allow the ADGM to issue fiat-referenced tokens (FRTs) and invite public feedback.
FRTs are stablecoins backed by high-quality, liquid assets priced in the same currency and may be sold rapidly with little price effect, according to the statement.
FRTs are made for payment and resemble Stored Value. In other developments, the Dubai Court of First Instance legalized crypto wage payments on August 16.
The ruling in case 1739 of 2024 changes the court's policy of not recognizing cryptocurrencies as wage payments owing to their lack of accurate assessment, according to NeosLegal partner Irina Heaver.
