Abu Dhabi is making significant strides in the realm of stablecoins. Here's a breakdown of the key developments:#AbuDhabiStablecoin

Dirham-Backed Stablecoin (AE Coin):

The UAE is set to launch its first fully regulated, dirham-backed stablecoin called AE Coin.

It will be pegged 1:1 to the UAE Dirham (AED), aiming for price stability.

AE Coin will be fully backed by reserves held within the UAE and will operate under the Central Bank of the UAE's (CBUAE) Payment Token Services Regulation, which mandates strict requirements for reserves, security, and transparency.

The initiative is a collaboration between prominent UAE entities, including the Abu Dhabi sovereign wealth fund ADQ, International Holding Company (IHC), and First Abu Dhabi Bank (FAB).

AE Coin aims to enhance financial inclusion, particularly benefiting the expatriate community through low-cost and fast remittances.

It is also expected to support transactions between machines and AI models within the UAE.

The stablecoin will operate on the ADI blockchain, developed by the Abu Dhabi-based non-profit ADI Foundation, which aims to ensure security and transparency.