Abu Dhabi Entities to Launch Dirham-Backed Stablecoin

Abu Dhabi-based entities International Holding Company (IHC), ADQ, and First Abu Dhabi Bank are planning to launch a dirham-backed stablecoin, which will be completely regulated by the UAE Central Bank. 

FAB will issue the stablecoin, and it will operate on the ADI blockchain. The stablecoin will be launched to provide a "reliable digital currency" for businesses, consumers, and institutions. 

The launch of the stablecoin will also support increasing digital uses, including machine-to-machine and artificial intelligence. 

Stablecoins are pegged to fiat currency and are less likely to be volatile compared to other cryptocurrencies like Bitcoin. 

UAE's Central Bank recently unveiled a digital symbol for the dirham to support its digital currency strategy.