According to Cointelegraph, Foresight News reports that Sonic Labs has canceled its plan to launch a dollar-pegged algorithmic stablecoin and instead chose to develop an alternative currency priced in UAE dirhams.

Andre Cronje, co-founder of Sonic Labs, confirmed the news, stating: "We will no longer issue a dollar-based algorithmic stablecoin, but will instead issue a mathematically bound dirham valued and settled in USD, which is absolutely not a dollar-based algorithmic stablecoin." Recently, the UAE announced the launch of a central bank digital currency (CBDC) in the fourth quarter of 2025.