Sonic Labs shifts focus from USD stablecoin to UAE dirham alternative, following backlash.

From Cointelegraph
March 29, 2025 07:51 AM:

Sonic Labs abandons plans for US dollar-pegged stablecoin, now focusing on developing UAE dirham alternative. This decision follows backlash against algorithmic stablecoins due to Terra ecosystem collapse in 2022. UAE Central Bank governor sees blockchain dirham as a way to enhance financial stability and combat financial crime.

Algorithmic stablecoin issuer Sonic Labs faces criticism, prompts reversal of stablecoin plans. Terra ecosystem collapse in 2022, wiping out billions in value, highlights risks of algorithmic stablecoins. European Union’s MiCA bill to ban algorithmic stablecoins to prevent future failures. Stablecoins increasingly used for everyday payments rather than large transfers.

Read more at Cointelegraph: Sonic Labs ditch algorithmic USD stablecoin for UAE dirham alternative