This stablecoin will be deployed on the ADI blockchain, which is developed by the ADI Foundation to promote blockchain adoption among financial institutions and governments.

Globally, stablecoins are gaining traction for facilitating financial inclusion, particularly in regions with limited access to traditional banking services.

The introduction of AE Coin is expected to simplify financial transactions and lower barriers for residents, particularly aiding migrant workers and small businesses.

This initiative reflects a growing global interest in non-USD-backed stablecoins, as the market capitalization of US dollar-pegged stablecoins has surpassed $230 billion, marking a significant year-over-year growth.

Experts emphasize that the successful implementation of stablecoins will rely on clear regulatory frameworks, transparency, and consumer protection.

This initiative aligns with Abu Dhabi's ambition to become a global Web3 hub, complementing Dubai's regulatory leadership in the blockchain space.

While a specific launch date for the stablecoin has yet to be announced, the groundwork indicates the UAE's commitment to leading in blockchain-enabled finance.

The UAE is set to launch a Dirham-backed stablecoin, regulated by the UAE Central Bank, aimed at enhancing digital payments across various sectors.

Despite the rise of non-USD stablecoins, a Citigroup report suggests that the majority of the stablecoin market will continue to be dominated by US dollar-backed assets.

The launch of the stablecoin represents a strategic move to integrate traditional finance with blockchain technology, promoting secure and scalable transactions.

Research indicates that approximately 93% of stablecoin transfers in the UAE are retail-sized, highlighting the potential for increased participation in cryptocurrency among the general public.

AE Coin, the UAE's upcoming stablecoin, aims to enhance financial inclusion by providing a secure and cost-effective digital payment solution, especially benefiting expatriates with low-cost remittances.