e& UAE partners with Al Maryah Community Bank (Mbank) for a major pilot program. They will explore using a dirham-backed stablecoin for customer payments.
The UAE’s telecom giant e& (formerly Etisalat) has announced a key partnership. The firm is collaborating with Al Maryah Community Bank (Mbank). This initiative seeks to pilot and experiment with the use of a dirham-backed stablecoin to make payments to customers. The objective of this initiative is to enable millions of customers of e& to pay bills. They will also be able to make digital transactions with regulated stablecoin. This asset is known as AE Coin.
Partnership Details and Scope Embed Regulated Innovation
e& UAE and Al Maryah Community Bank signed MOU for this pilot. This agreement is a great step. For this use AE Coin is the stablecoin that is chosen. It is the first Central Bank licensed, fully reserved, AED-backed payment token in the UAE.
The collaboration will look at how AE Coin can be used on a variety of e& digital channels. This includes providing self service options for customers. These transactions include paying the bills of services of mobile, home, etc.
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Furthermore, customers can use the coin for topping up of prepaid plans. They will also be able to settle other digital transactions within the overall digital ecosystem of e&.
The partnership is an important step to embedding regulated financial innovation. It takes this technology for everyday consumer services. This also fosters a safe and very efficient digital economy within the UAE. Ramez Rafeek, General Manager of AED Stablecoin LLC noted the importance of the initiative.
He said that this provides an international standard. This benchmark is for integrating licensed stablecoins into the vital consumer services. This shows a real-world mass adoption potential.
Broader Context of UAE Stablecoins and Compliance
This partnership is part of a broader push within the UAE. The aim is to bring stablecoins into the national financial scene. This is in line with the country’s Digital Economy Strategy.
The UAE has created a very beneficial regulatory environment for digital assets. Authorities such as the Virtual Asset Regulatory Authority (VARA) in Dubai offer some clear frameworks. The Abu Dhabi Global Market (ADGM) is also providing good support.
Another dirham-backed stablecoin is being developed in a joint effort. This includes First Abu Dhabi Bank (FAB), sovereign investor ADQ and International Holding Company (IHC). These multiple initiatives reflect the national priority.
Dubai used to have a pilot program for fees to government services. It included provisions for the payment of fees in the form of cryptocurrencies. These were immediately converted into an AED pegged stable coin. The AE Coin initiative with e& is a great step towards mass adoption. It brings forth regulated blockchain payments for millions of consumers to use for day-to-day purchases.
Meanwhile, Belarus has tightened its crypto rules. President Lukashenko signed a decree prohibiting persons from foreign exchanges. All crypto trading in Belarus must now happen on domestically regulated platforms. The policy targets residents and entrepreneurs in the High Technology Park (HTP). Currently, licensed crypto exchanges can operate only if they are registered with the HTP. This rule ensures all transactions stay under local supervision and reduces involvement with foreign exchanges.
