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.

AE Coin will facilitate retail payments through swift, instant settlements, offering lower costs and faster operational speeds compared to traditional payment systems.

The initiative aims to enhance financial inclusion by providing a secure and cost-effective digital payment solution, particularly benefiting expatriates with low-cost remittances.

The use of stablecoins is expected to simplify financial transactions and lower barriers for residents, particularly benefiting migrant workers and small businesses.

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

This initiative represents a strategic move to link traditional finance with blockchain technology, promoting secure and scalable transactions.

The stablecoin aims to facilitate digital transactions for consumers, businesses, and institutions, pending regulatory approvals, and will support machine-to-machine and AI applications.

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

This stablecoin, named AE Coin, will be deployed on the ADI blockchain, which is designed to promote blockchain adoption among financial institutions and governments.

Experts emphasize that the success of stablecoins will depend on clear regulations, transparency, and consumer protection, as noted by industry leaders.

The launch of AE Coin aligns with a growing global interest in non-USD-backed stablecoins, as countries like El Salvador, Australia, and China are also integrating stablecoins into their financial systems.

The ADI Foundation has established partnerships with governments in over 20 countries, promoting access to global competition for emerging economies.