#AbuDhabiStablecoin The Abu Dhabi Stablecoin is a recently announced digital currency pegged to the UAE Dirham. It is a collaborative effort between three major Abu Dhabi entities: the Abu Dhabi Developmental Holding Company (ADQ), the International Holding Company (IHC), and First Abu Dhabi Bank (FAB).
Here's a breakdown of what we know:
* Pegged to the Dirham: The stablecoin's value will be directly linked to the UAE's official currency, the Dirham.
* Central Bank Oversight: The stablecoin will be regulated by the Central Bank of the United Arab Emirates (CBUAE), ensuring it operates within a secure and legal framework.
* ADI Blockchain: The stablecoin will operate on the ADI blockchain, a new technology developed in the UAE by the ADI Foundation. This blockchain aims to provide a compliant network for blockchain payments.
* Issuance by FAB: Subject to regulatory approval, First Abu Dhabi Bank (FAB), the UAE's largest bank, will be the issuer of the stablecoin.
* Wide Range of Applications: The stablecoin is expected to facilitate easier payments and business transactions both within the UAE and internationally. It aims to serve individuals, consumers, businesses, and institutions, and support emerging digital applications like machine-to-machine communication and AI.
* Boosting Digital Infrastructure: This initiative is seen as a significant step in strengthening the UAE's digital infrastructure and positioning it as a leading hub for financial technology and blockchain innovation.
Regulatory Landscape in Abu Dhabi for Stablecoins and Digital Assets:
Abu Dhabi Global Market (ADGM), a financial free zone, has been proactive in establishing a regulatory framework for digital assets, including stablecoins. The Financial Services Regulatory Authority (FSRA) within ADGM has introduced regulations for Fiat-Referenced Tokens (FRTs), which are essentially stablecoins pegged to fiat currencies.
Key aspects of the ADGM's regulatory approach include:
* FRT Issuance as a Regulated Activity: Issuing FRTs is a distinct regulated activity