#AbuDhabiStablecoin

Abu Dhabi promotes stablecoins backed by dirham

Abu Dhabi is advancing as a leader in cryptocurrency regulation by approving a framework for stablecoins fully backed by AED (dirham). The Financial Services Regulatory Authority (FSRA) and the Central Bank of the UAE require cash reserves and will ban algorithmic stablecoins or those tied to other currencies.

Projects like Paxos' USDL (with a 5% annual yield) are already operating under this regulation, while the country accelerates its CBDC and attracts fintech companies.

The goal: to turn the UAE into a global hub for digital payments, although challenges of regulatory coordination persist. A clear bet on programmable money.