The United Arab Emirates has announced the launch of a new stablecoin pegged to the dirham (AED) at a 1:1 ratio, which will provide stability and trust.

Developed on the ADI blockchain, it will be used by both individuals and legal entities to simplify local and international payments, supporting innovations such as M2M and AI. The stablecoin will be regulated by the Central Bank of the UAE, which guarantees its reliability.

It should be noted that Kyrgyzstan also plans to issue a dollar-backed stablecoin, USDKG, backed by the Ministry of Finance, this year.

“Stablecoin will be used in cross-border transactions and international trade with a focus on Central Asia, with expansion into Southeast Asia and the Middle East planned for a later date,” said project advisor Gabriel Guerra.

It should be noted that some Islamic scholars have expressed concern about the use of cryptocurrencies, considering them haram due to their high volatility, speculative nature, and potential use in illegal activities.