The United Arab Emirates (UAE) is expected to launch a digital dirham in the fourth quarter of 2025. According to Khaleej Times, UAE Central Bank Governor Khaled Mohamed Balama stated that this blockchain-based currency could improve financial stability and support combating financial crime. The retail sector can expect the digital dirham to be launched by the end of 2025. The digital dirham will contribute to developing innovative digital products and services, along with new business models, while reducing costs and expanding international market access.
The report indicates that the digital dirham and its physical version will be accepted across all payment channels. The introduction of the digital dirham comes with a new symbol, providing a clear international identity. The new symbol features the first letter of the dirham, accompanied by two horizontal lines representing currency stability, inspired by the UAE flag.
In June 2024, CBUAE approved a licensing framework for stablecoins, clarifying the issuance, licensing, and supervision of payment Tokens backed by the UAE dirham. Following this decision, Tether announced plans to launch a dirham-backed stablecoin, collaborating with Phoenix Group and Green Acorn Investments. On October 18, 2024, AED Stablecoin received initial approval for issuing a dirham-backed stablecoin.
In addition to dirham-backed stablecoins, US dollar and euro stablecoins are also attracting attention in the UAE. On February 24, Dubai Financial Services Authority recognized Circle's USDC and EURC as the first stablecoins in the cryptocurrency Token regime. Meanwhile, a Ripple spokesperson indicated that the company is exploring the country's stablecoin needs and closely monitoring the latest developments.
