Launch of AE Coin: UAE’s First Dirham-Backed Stablecoin for Digital Transactions

AED Stablecoin LLC has received in-principle approval from the Central Bank of the UAE to launch its stable digital currency, AE Coin. This initiative marks the introduction of the UAE’s first dirham-backed stablecoin, in line with the country’s progressive vision and the UAE Digital Government Strategy 2025.

Under the Payment Token Services Regulation (Circular No. 2/2024), AED Stablecoin will be licensed to issue this fiat-backed stablecoin. Each AE Coin will be fully supported by the UAE dirham, combining the agility of blockchain technology with the reliability of traditional currency. The introduction of AE Coin aims to facilitate seamless and secure payment solutions while bolstering the UAE's rapidly growing digital economy.

As the first digital currency in the UAE regulated by the Central Bank, AE Coin provides unprecedented credibility and trust. It maintains stability and security through transparent reserves and regular audits, mitigating the volatility typically associated with cryptocurrencies. AE Coin will also integrate with decentralized finance (DeFi) platforms, allowing users to engage in lending, borrowing, and earning interest without intermediaries. The currency employs advanced blockchain technology with multi-layer encryption to ensure all transactions are secure and transparent, adhering to the highest standards of security and compliance.

The roadmap for AE Coin includes plans for secure payment solutions across e-commerce platforms, the introduction of a mobile wallet app for convenient access, and partnerships with merchants to expand digital currency transaction use cases.

Ramez Rafeek, General Manager of AED Stablecoin, expressed excitement about receiving approval from the Central Bank to issue AE Coin. He stated, “As the first stablecoin regulated by the Central Bank, AE Coin will revolutionize the digital currency space by providing financial freedom, unmatched stability, and enhanced security.”

For both businesses and individuals, AE Coin promises a new era of transparent and cost-effective financial services, offering a wide range of applications from payments to decentralized finance solutions. It facilitates fast, low-cost transactions while operating under the strict regulatory oversight of the Central Bank, positioning AE Coin at the forefront of the UAE’s transition to an innovative digital economy.

AE Coin merges stability with security, making it an ideal solution for various use cases. Companies in the UAE can benefit from instant, stable payments using AE Coin, improving cash flow management and reducing transaction costs. Moreover, AE Coin offers individuals a secure and user-friendly digital currency for everyday transactions, simplifying domestic transfers at lower costs compared to traditional banking.

The strategy for AE Coin includes forging partnerships with leading financial institutions, payment gateways, and technology providers to accelerate its adoption. Future objectives entail integration with decentralized applications (dApps) and listings on major cryptocurrency exchanges.

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