TechFlow news, October 14 — According to Cointelegraph, the Central Bank of the United Arab Emirates (CBUAE) has granted in-principle approval for a stablecoin license to AED Stablecoin under its Payment Token Services regulatory framework. This makes AED Stablecoin the first entity authorized to issue a stablecoin pegged to the UAE dirham. If final approval is obtained, AE Coin issued by AED Stablecoin could be used as a local trading pair in cryptocurrency transactions and enable merchants to accept it as payment for goods and services.
The CBUAE's licensing framework requires stablecoin issuers to hold their reserves fully in cash deposited into segregated custodial accounts at UAE banks, or to hold at least 50% of reserves in cash, with the remainder eligible for investment in UAE government bonds and CBUAE monetary bills.
