Cryptocurrency firm Tether has just announced plans to launch a stablecoin pegged to the UAE’s dirham. Tether aims to capitalize on the UAE’s flourishing cryptocurrency market that is expected to reach $292.1 million by the end of 2024. Tether’s revolutionary decision to diversify its stablecoin portfolio is in collaboration with Abu Dhabi-based Phoenix Group PLC and Green Acorn Investments Ltd.
Very excited for the UAE Dirham-Pegged stablecoin.
The opportunity is immense. https://t.co/ogepSRyGtb pic.twitter.com/ujruBJLW2o— Paolo Ardoino 🤖🍐 (@paoloardoino) August 21, 2024
Stablecoins are digital tokens designed to keep a constant value and are backed by traditional currencies such as the U.S. dollar or euro. They are often used as a form of payment, as well as to trade in and out of other tokens, such as bitcoin, on crypto exchanges. According to Tether CEO Paolo Ardoino, the main purpose [of the collaboration] is to create an optionality towards the U.S. dollar.” Ardoino emphasized the UAE’s dirham transforming into lucrative currency as global trends shift.
The UAE’s focus on developing its blockchain offerings, especially with regard to cryptocurrency, makes it an ideal destination for such radical innovation. As cryptocurrency wanes in the US amidst polarizing political sides on the asset class, Tether’s shift to the UAE dirham echoes the nation’s commitment to innovation. Munaf Ali, co-founder and Group MD of Phoenix Group claims that “innovation isn’t just about technology; its about redefining the boundaries of possibility. We are pioneering a decentralized future from the heart of the UAE, transforming digital assets to empower economies and communities globally.”
Radical policies such as UAE companies offering cryptocurrency as a salary to employees and accepting it as a means of payment for school fees and real estate position the nation as the world’s crypto capital. Ardoino informs in an official announcement that licensing by the UAE Central Bank is expected to take a few months.
