Today's major positive news: UAE stablecoin leads the crypto world out!
Today, International Holding Company (IHC), the sovereign wealth fund Abu Dhabi Development Holding Company (ADQ), and First Abu Dhabi Bank (FAB) announced plans to launch a new stablecoin backed by the UAE Dirham. This stablecoin will be fully regulated by the Central Bank of the UAE and issued by FAB, the largest bank in the UAE.
1. The stablecoin requires approval from regulatory authorities, but considering the background of the companies involved, obtaining approval should not be difficult.
2. The main purpose of this stablecoin is to be used for payment settlements! It will serve as a reliable digital currency for citizens, consumers, businesses, and institutions in various daily scenarios.
3. Abu Dhabi and Binance are ahead of the US this time. Given Abu Dhabi's previous $2 billion investment collaboration with Binance, it is believed that the stablecoin will see rapid development and application in the UAE. This is a significant positive development for the long-term growth of the entire industry.
4. This stablecoin is not USD-pegged, but rather based on its own financial stablecoin system anchored to the UAE Dirham, developed on its own blockchain system by the ADI Foundation.
5. From a broader development trend perspective, the crypto world is gradually entering a third development phase:
(1) People in the crypto space are speculating, while institutional investors are packaging narratives, using the guise of technological innovation to promote financial schemes.
(2) The ETF for BTC and ETH has opened traditional funding channels, with a significant amount of off-market capital from Wall Street entering ETFs and beginning to engage with the crypto space.
(3) With practical applications under a legal regulatory framework, the role of cryptocurrencies is moving beyond speculation to actual use and payments. For example, the application of BTC and ETH in Russian oil trade last year; and today, the launch of a stablecoin in Abu Dhabi indicates that the crypto world is about to enter this direction of development.
6. In the future, there will definitely be more than just fiat currency as payment options; recognized mainstream cryptocurrencies may also have opportunities! So it’s important to hold on!
