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The United Arab Emirates (UAE) is poised to launch the first industry-specific stablecoin in the Middle East, a project supported and developed in collaboration with the Royal Kingdom of Saudi Arabia, aiming to streamline and modernize retail settlements and cross-border payments.
Launched in March of 2023, the Digital Dirham project at the Central Bank has laid out the framework for this digital transformation, with a completion date of 2025.
“Use case will be key for stablecoins driving wider adoption, with the need for clear regulation paramount for the development of a robust digital financial ecosystem.”
added Reece Merrick, Managing Director, Middle East and North Africa, Ripple. The UAE’s overall approach to crypto is poised to aid AE Coin in being a standout player in day-to-day trade with the added bonus of solidifying its global financial reputation.
A Stablecoin with Ease of Accessibility and Regulatory Sanctuary
AE Coin has received approval to act in the United Arab Emirates as a national stablecoin, pegged against the dirham (AED) and performing under a regulatory framework outlined by Abu Dhabi Global Market (ADGM) and Dubai’s Virtual Assets Regulatory Authority (VARA).
The report continued to say that the stablecoin met its milestone in December 2024, which required it to comply with strict reserves, periodic inspections, and liquidity tests. For added measure, the UAE Central Bank launched a new dirham symbol in March 2025 to underscore the country’s digital aspirations.
AE Coin Value as of April 2025:
$1.00 USD (Approx. 3.67 AED)
Stablecoins and Worldwide Financial Inclusion
Almost 2.5 billion adults around the world live outside the formal banking system, according to the World Bank’s 2025 Global Financial Inclusion report. Stablecoins offer an efficient solution by providing anywhere, anytime access to financial services through digital wallets in the absence of physical banking infrastructure.
“This is a scalable financial solution and a powerful use case for the combination of blockchain and IoT technology, which can allow billions of people around the world to access the traditional banking system.”
said Sebastien Badault, VP of Ledger, the center’s director.
Regulated digital currencies are gaining traction around the world, with countries such as El Salvador, China, Singapore, and Australia already having their own stablecoin frameworks in place.
How AE Coin Might Become King of UAE Retail Payments
According to Chainalysis, 93% of stablecoin transactions in the UAE are retail, which suggests high demand from individual users and small businesses. While transaction fees are much lower than for traditional credit cards and settlement times are in the vicinity of seconds rather than days, we anticipate that stablecoins, in particular, are going to give retail payments a bit of a shake-up.
The UAE is among the world’s most prolific remitters, based on the World Bank. AE Coin could make international money transfers easier for millions of residents by cutting out the middleman banks and dealing with the accompanying service fees.
Retail Payment Benefits of AE Coin:
Instantaneous fund settlement
Very low cost of transaction (<0.5%).
Faster and more convenient cross-border payments
Broader financial inclusion
AE Coin Price Forecast: Stability and Modest Growth
| Year | Predicted AE Coin Value (USD) | Commentary |
| End 2025 | $1.00 | Pegged to AED, expected to maintain parity |
| 2026 | $1.00 | Broader usage in remittance and retail payments |
| 2027 | $1.01 | Minor value appreciation amid expanded global adoption |
| 2028 | $1.02 | Introduction to real estate and public sector payments |
| 2030 | $1.05 | Widespread integration with cross-border settlements |
Blockchain in the Commercial Sector in UAE
Dubai’s multi-commodities corporation DMCC is developing a crypto tower with plans to allow for smart contracts for smart agreements for tenancy and property ownership with sound legal signatures and on-chain voting rights. These are further indications of a climate welcoming to the expansion of stablecoins in real estate, supply chain operations, and property rental.
According to a representative of Binance,
“Decentralized finance products remove the barriers of traditional banking, providing unparalleled access to financial services round-the-clock and outside of traditional working hours.”
Changing Bank Sector Attitudes Towards Stablecoins
International banks are slowly moving towards integrating digital assets, once again starting with the wary acceptance of stablecoins. Standard Chartered, for instance, teamed up with blockchain companies to create a stablecoin pegged to the Hong Kong dollar. And other large companies, including PayPal and Stripe, have initiated stablecoin projects or announced plans to do so.
“With government-issued stablecoins, suddenly cross-border transactions can go from taking days to minutes, removing one of the most inefficient aspects of traditional finance,”
said Josh Gilbert, market analyst at eToro.
The regulatory technology, algorithmic compliance models, and dynamic maintenance requirements are meant to build institutional confidence and ensure the best interest of consumers.
Even Stablecoins Are Not Immune to Market Forces
And, despite being designed to be stable, they’re not without risk. There are also commodity-backed stablecoins such as DGLD and USOil, which expose holders to fluctuations in the price of commodities. Even fiat-pegged stablecoins rely on good regulatory and reserve structures to keep their value.
The (so far) 2022 eruption of TerraUSD is an excellent description of what can happen when a stablecoin is opaque about what is in its reserves and not all that thoroughly audited. Regulators in the UAE value transparency and resilience and realize that trust is the only path toward mass market adoption.
“Clear guidelines for reserve backing, audit practices, and consumer protections are necessary to ensure that stablecoins serve their proper role in the economy while protecting users and minimizing systemic risk,”
Gilbert added.
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Frequently Asked Questions
1. What is AE Coin—and how will it work in the UAE?
AE Coin is a UAE dirham-pegged, government-authorized stablecoin for retail payments, remittance, and digital financial services platforms within the regulated space.
2. Why should I use AE Coin instead of a bank?
AE Coin makes instant payments, lower fees, global digital wallet access, and financial inclusion available to anyone without physical bank accounts or lengthy paperwork approvals.
3. Will AE Coin impact international money transfers for expats in the UAE?
AE Coin, of course, works just like the rest of them. NOTE: This eliminates intermediaries, lowers transfer fees, AND enables fast, safe international payment and remittances using stable digital currency infrastructure.
4. 1. Risks for AE Coin transactions?
Stablecoins are usually safe options; however, risks include regulation and reserve transparency, and some don’t have the same protections without tight oversight or proof of real-world assets held in reserve.
Glossary of Key Terms
1. Stablecoin
A digital currency pegged to the value of a fiat currency, commodity, or a basket of assets to ensure price stability. Stablecoins are cryptocurrency-stabilized coins or tokens that reduce the volatility that is typical of cryptocurrencies, making them useful for payments, remittances, and trading transactions.
2. AE Coin
The UAE’s first central bank-regulated stablecoin, BNSD, is denominated in UAE dirhams and was developed to facilitate payments for the merchants and consumers in the MENA region, the statement said.
3. Digital Dirham Strategy
To modernize the UAE’s payment systems by issuing a national digital currency, encouraging the adoption of the distributed ledger, and facilitating growth in the payments industry in which stablecoins will be connected.
4. Remittance
Remittances A foreign worker’s transfer of money to people in his/her home country. In the UAE, remittances contribute largely to the economy, and stablecoins such as AE Coin seek to simplify the process of repatriation of these cross-border transactions.
5. Retail Payments
Small-value transactions paid by retail customers (e.g., for groceries, clothing, or food). AE Coin aims to digitalize retail payments, enabling same-day settlements at a lower cost than traditional banking.
6. Blockchain
A decentralized, distributed digital ledger that records transactions on many computers. Stablecoins such as AE Coin leverage blockchain technology to deliver transparent, secure, and tamper-proof verification of transactions.
7. Cryptocurrency Regulation
The legal and regulatory frameworks that regulate the issuance, trading, and use of digital assets such as stablecoins. In the UAE there are solid currency regulators – these are VARA and ADGM, and they control the stablecoin framework.
8. Reserve Backing
Reserves that stablecoin issuers store to back their virtual currency. BDA Coin must be 100% backed by top-quality liquid assets and audited periodically to maintain financial integrity.
