UAE set to launch national crypto stablecoin

The United Arab Emirates is getting ready to change its financial system by launching AE Coin, its first national stablecoin.

This follows regulatory approval that was granted back in December 2024. The launch of AE Coin is part of a bigger plan by the UAE to improve digital payments and strengthen its role as a major financial center worldwide.

The UAE Central Bank started its digital currency project, called the “Digital Dirham,” in March 2023. As part of this project, it introduced new rules for stablecoins and digital currencies.

To further support this strategy, the Central Bank also revealed a special symbol for the digital dirham and set up a clear framework for how cryptocurrencies, including stablecoins, should operate. The goal is to encourage more people and businesses to use digital money.

Stablecoins are a type of cryptocurrency that is linked to stable assets like the US dollar. They are considered less risky compared to regular cryptocurrencies because their value does not change as much.

In the UAE, stablecoins are expected to make financial transactions easier, faster, and cheaper, especially for migrant workers and small businesses. Since the UAE is a key center for money transfers around the world, using stablecoins could make sending money across borders much more efficient.

Worldwide, stablecoins have become popular because they help people who don’t have easy access to traditional banks. In the UAE, about 93% of stablecoin transactions are small, retail-sized transfers, showing that they could help more everyday people get involved in the digital economy.

The launch of AE Coin also follows a global trend where countries like El Salvador, Australia, and China are starting to include stablecoins in their financial systems.

However, experts point out that for stablecoins to succeed, it is very important to have clear rules, transparency, and strong protections for consumers. As more traditional banks start to explore stablecoins, the UAE’s approach could become an example for other countries looking to bring digital currencies into regular financial use.