Categories: MarketsMenafn

Ripple Plans Dirham-Backed Stablecoin as UAE Adopts New Regulatory Framework

Ripple is preparing for the potential launch of a dirham-backed stablecoin in the UAE as the country strengthens its digital finance regulatory environment. 

The Central Bank of the UAE (CBUAE) recently introduced a framework supporting dirham-backed and other currency-backed stablecoins, aiming to integrate stablecoins into the UAE’s financial systems and payments infrastructure. 

This regulatory development aligns with the UAE’s ambition to position itself as a leader in digital assets. Ripple’s longstanding presence in the region makes it a key player in the emerging market.

In its announcement on Nov.8, Ripple emphasized the UAE’s proactive approach to stablecoin regulation, noting, “The UAE has distinguished itself as a global hub for progressive digital asset regulation, creating a fertile environment for blockchain innovation.” 

The blockchain’s potential dirham-backed stablecoin would contribute to this vision, supporting efficient regional digital transactions while avoiding currency fluctuation issues.

Ripple Leverages UAE Framework for Dirham-Backed Stablecoin Initiatives

The UAE’s framework allows for the issue and use of AED-backed stablecoins for payments. In contrast, stablecoins tied to other currencies can be registered for virtual asset transactions within set guidelines.

CBUAE’s approach includes specific measures to manage risks such as market volatility and liquidity, contributing to a safer financial environment for stablecoin integration. 

Ripple, previously partnered with the National Bank of Abu Dhabi to facilitate remittance solutions, is positioned to leverage these regulatory provisions for its stablecoin initiatives.

The new framework contrasts with regulatory approaches in other regions. While the UAE allows stablecoins pegged to non-AED currencies for virtual asset payments, Europe’s Markets in Crypto-Assets (MiCA) regulation limits the daily transactions of stablecoins backed by non-EU currencies. 

Ripple’s involvement with a dirham-backed stablecoin could make it a unique player in the UAE. The stablecoin’s regional backing may offer advantages for financial institutions and businesses handling cross-border transactions.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

Crypto Liquidations Exceed $340M as Bitcoin Reaches New High

Over $340 million in crypto liquidations occurred within 24 hours after Bitcoin’s price spiked near…

1 day ago

XRP Surges 31.9% in 24 hours After Gensler Announces Exit

The price of the XRP Ledger blockchain’s native token (XRP) has been rising over the…

2 days ago

Momcozy Honored with Multiple International Awards

Momcozy, a global leader in maternal and infant care, has continued to impress with its…

2 days ago

Local SEO Tampa Enhances Digital Marketing Services for Tampa Bay Small Businesses

Local SEO Tampa (https://localseotampa.com/), a trusted digital marketing firm in Florida since 2007, proudly expands…

2 days ago

VAIOT Launches Legal Torch to Democratize Access to Affordable Legal Support

Birkirkara, Malta, 22nd November 2024, ZEX PR WIRE, VAIOT, a company providing AI-driven Legal Tech…

2 days ago

Classic Watches: A Timeless Source in the Data-Driven Era and Why Dedondi is Leading the Way

Dubai, UAE, 22nd November 2024, ZEX PR WIRE, In today’s data-driven world, information has become…

2 days ago