Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
On August 21, Tether, a leading issuer of stablecoins, revealed the introduction of a stablecoin linked to the United Arab Emirates dirham (AED). This groundbreaking initiative is part of a strategic alliance with two notable UAE-based firms, Phoenix Group PLC and Green Acorn Investments Ltd.
Tether Seeks to Enhance Cross-Border Transactions and Remittances in the UAE
As stated in the press release, the new token will be “fully backed by liquid UAE-based reserves” and comply with Tether’s “transparent and robust reserve standards,” offering users a stable digital equivalent of the local currency.
The launch of the Dirham-backed stablecoin underscores Tether’s dedication to fostering the rapidly expanding crypto environment in the UAE, as the stablecoin will be tied to the nation’s local currency (AED).
Tether’s CEO, Paolo Ardoino, highlighted the importance of this initiative, noting that the UAE is evolving into a “significant global economic hub.”
He asserts that the Dirham-pegged stablecoin will serve as a “valuable and versatile addition” for Tether’s users, providing an economical means to access the advantages of the AED.
The collaboration with Phoenix Group PLC, a leading tech conglomerate based in Abu Dhabi, aims to furnish businesses and individuals in the UAE with an “essential tool” for digital transactions.
Seyed Mohammad Alizadehfard, co-founder and Group CEO of Phoenix Group, conveyed enthusiasm regarding the partnership, emphasizing the firm’s commitment to delivering innovative financial solutions.
Leveraging the UAE’s Crypto Surge
Related Posts
The introduction of the Dirham-pegged stablecoin coincides with the UAE’s increasing status as a center for cryptocurrency and blockchain innovation.
Since 2022, the nation has experienced a rise in crypto investments, partly due to the establishment of the Virtual Asset Regulatory Authority (VARA) in Dubai.
This recent development from Tether follows the company’s recent actions on the TRON blockchain, where it has issued an additional $1 billion in USDT tokens.
Importantly, the global stablecoin market is anticipated to see substantial growth, with projections estimating a value of $2.8 trillion by 2028.
At the same time, cryptocurrency continues to gain momentum in the UAE, exemplified by a recent ruling from the Dubai Court of First Instance that approved salary payments in crypto under employment contracts. This case involved an employee who filed a lawsuit asserting that the employer had failed to pay their wages, which included a monthly salary in fiat and 5,250 EcoWatt tokens.
Irina Heaver, a partner at the UAE law firm NeosLegal, noted that the court’s ruling in case number 1739 of 2024 reflects a “progressive approach” to incorporating digital currencies into the country’s legal and economic framework.
Dubai court recognizes crypto as a valid salary payment
Heaver stated that the case involved an employee who filed a lawsuit claiming that the employer had not compensated them for wages, wrongful termination, and other benefits.
The worker’s employment contract… pic.twitter.com/AuUUkn6NVJ
— ChainMentor – AI Web3 Learning (@ChainMentorApp) August 16, 2024
Heaver stated that the case involved an employee who filed a lawsuit claiming that the employer had not compensated them for wages, wrongful termination, and other benefits.The recent ruling illustrates the court’s readiness to acknowledge the legitimacy of crypto-based salary payments, further reinforcing the UAE’s status as a crypto-friendly jurisdiction.
The post Tether to Introduce Dirham Stablecoin in Partnership with UAE Partners appeared first on Cryptonews.
