Crypto News Today- Stablecoin Licensing System Gets the Nod from UAE Central Bank

Stablecoin Licensing System Authorized by UAE Central Bank

Crypto News– The board of directors of the Central Bank of the United Arab Emirates (CBUAE) has given the green light for the implementation of a new system to regulate and license stablecoins.

During a meeting held in Abu Dhabi, the board reportedly deliberated on various initiatives falling under the government’s financial infrastructure transformation (FIT) program. This program is designed to enhance digital transactions, propel the country’s digital economy forward, and stimulate innovation in the financial sector. The meeting was presided over by UAE Vice President and CBUAE Chairman, Sheikh Mansour bin Zayed Al Nahyan. Among the attendees were Deputy Chairmen Abdulrahman Saleh Al Saleh and Jassem Mohammad Al Zaabi, CBUAE Governor Khaled Mohamed Balama, and other members of the central bank’s board.

The United Arab Emirates Greenlights a Fresh System for Licensing Stablecoins

During the meeting, the board gave the green light to the issuance of regulations governing the oversight and licensing of stablecoins. In an interview with local media outlet Unlock Blockchain, Kokila Alagh, the founder of KARM Legal Consultants, elucidated that these regulations provide clarity on the issuance, licensing, and supervision of dirham-backed payment tokens.

Financial Evolution Initiative of the UAE

Although the specifics of the meeting have not been disclosed, it is reported that the agenda included discussions on significant projects within the Financial Infrastructure Transformation (FIT) program. On February 13, the Central Bank of the United Arab Emirates (CBUAE) announced its intention to introduce a central bank digital currency (CBDC) as part of the FIT initiative.

The issuance of a CBDC is intended to tackle inefficiencies in cross-border payments and stimulate innovation in domestic payments. The CBUAE believes that introducing a CBDC will enhance the UAE’s competitiveness as a financial and digital payments center.

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