Tether, the entity responsible for developing the USDT stablecoin, plans to launch a new stablecoin that will be tied to the value of the United Arab Emirates Dirham (AED).
This initiative is being carried out in partnership with Phoenix Group and Green Acorn Investments. The next stablecoin, which will be tied to the Dirham, will have its value backed by ample liquid reserves held within the UAE. This will guarantee that each token exactly represents the value of the AED.
This backing offers consumers a secure and dependable method of interacting with the currency of the United Arab Emirates, bolstered by the utilization of blockchain technology.
The collaboration among Tether, Phoenix Group, and Green Acorn Investments is anticipated to simplify global trade and remittances, reduce transaction costs, and provide safeguards against currency volatility.
Paolo Ardoino, the CEO of Tether, thinks that the stablecoin tied to Dirham would effectively address requirements such as cross-border payments, trading, and the diversification of digital assets.
The project is in accordance with the UAE Central Bank’s Payment Token Services Regulation (PTRS), which requires businesses in the UAE to accept cryptocurrency payments for goods and services using a payment token guaranteed by Dirham.
The implementation of the PTRS laws is scheduled to be completed by June 2025, with a transitional phase in place to facilitate firms in adjusting to the new requirements.
Phoenix Group CEO Seyed Mohammad Alizadehfard expresses confidence in the stablecoin’s ability to transform the digital economy of the UAE, commending Abu Dhabi’s forward-thinking approach to blockchain and digital assets.
Recently, the Dubai Court of First Instance has upheld the use of cryptocurrency for salary payments in employment contracts, marking a significant shift in the UAE’s judicial stance towards digital currencies, following a case involving an employee claiming non-payment of salary, unjust termination, and other employment-related entitlements.
