#AbuDhabiStablecoin Abu Dhabi has launched a new stablecoin project, a dirham-backed digital currency aimed at advancing payment solutions and digital infrastructure. This initiative is a collaboration between major institutions, including Abu Dhabi Developmental Holding Company (ADQ), International Holding Company (IHC), and First Abu Dhabi Bank (FAB).

Key Features of the Stablecoin

- *Dirham-Backed*: The stablecoin is pegged to the UAE dirham, providing a stable digital asset compared to volatile cryptocurrencies like Bitcoin.

- *Regulated*: The stablecoin is fully regulated by the UAE Central Bank, ensuring a clear operational framework for the sector.

- *Digital Infrastructure*: The stablecoin will operate on the ADI blockchain, supporting emerging applications like machine-to-machine transactions and artificial intelligence-driven processes.

- *Usage*: The digital currency will be used by consumers, businesses, and institutions, potentially increasing digital currency usage across various sectors ¹ ² ³.

Benefits and Impact

- *Significant Impact*: The stablecoin is expected to have a significant impact on finance, commerce, and trade in the UAE.

- *Digital Payment Landscape*: The initiative aims to transform the digital payment landscape in the UAE, enhancing regional financial infrastructure.

- *Blockchain Innovation*: The project showcases Abu Dhabi's commitment to blockchain innovation and digital asset development ⁴ ¹.

UAE's Digital Currency Strategy

- *Digital Dirham Initiative*: The UAE Central Bank launched the "Digital Dirham" initiative in March 2023, demonstrating the country's serious commitment to building a robust and regulated digital financial system.

- *Regulatory Framework*: The UAE has introduced specific regulations for stablecoins, providing a clear operational framework for the sector ² ¹.