Tether launching stablecoin pegged to UAE dirham to meet demand, positive.

From Investing.com

August 21, 2024 10:25:47 AM:

Cryptocurrency company Tether plans to launch a stablecoin pegged to the UAE dirham to meet demand for the Gulf currency and offer an alternative to the U.S. dollar. The company already runs the world’s largest stablecoin, USDT, worth around $117 billion. The UAE is positioning itself as a global crypto hub, allowing crypto payments in various sectors and developing regulations in Abu Dhabi and Dubai.

Tether CEO Paolo Ardoino believes the dirham will become a preferred currency as global trade shifts. The UAE, which pegs its currency to the U.S. dollar, is aiming to boost adoption of cryptocurrencies with initiatives like crypto payments for real estate. Tether also offers stablecoins pegged to the euro, yuan, Mexican peso, and gold.

Regulators have expressed concerns over the risks posed by stablecoin adoption. Tether’s recent growth has been fueled by demand in emerging markets like Argentina, Brazil, Turkey, Vietnam, and parts of Africa, where USD can be scarce. The new dirham stablecoin will be backed by liquid UAE reserves, aiming to streamline international trade, reduce fees, and hedge against currency fluctuations.

The dirham stablecoin will be launched in collaboration with Phoenix Group and supported by Green Acorn Investment. The firms did not disclose a launch date, but expect licensing from the UAE Central Bank to take a few months. The blockchain platform supporting the stablecoin has yet to be selected, according to Phoenix Group’s Co-founder and CEO Seyed Mohammad Alizadehfard.

Read more at Investing.com: Tether to launch stablecoin pegged to UAE’s dirham By Reuters