UAE Introduces Groundbreaking Dirham-Backed Stablecoin
While many newcomers in the stablecoin arena have been primarily focused on developing USD-pegged stablecoins, Akshay Naheta, a former executive at SoftBank, is taking a distinctive approach.
He has unveiled a novel stablecoin that’s backed by the United Arab Emirates Dirham (AED).
Naheta, a seasoned financial expert at 42 years old, has established DTR within the international financial free zone of the Emirate. Collaborating with DRAM Trust, a Hong Kong-based entity with strong ties to numerous high-net-worth individuals, they aim to capitalize on the burgeoning stablecoin market. Analysts at Bernstein predict this market to grow exponentially, potentially reaching $2.8 trillion in the next five years.
The DRAM coins aim to offer increased stability to individuals residing in nations plagued by high inflation rates, such as Turkey, Egypt, and Pakistan. Furthermore, the UAE stablecoin is envisioned as an alternative to the SWIFT system.
In a recent interview, Naheta explained that their primary focus lies in providing banking services to the unbanked and underbanked in these countries. He emphasized the opportunity for funds to flow into this initiative as people seek to diversify their financial exposure and hold a currency complementary to the US dollar.
Availability of the UAE Stablecoin on Decentralized Exchanges (DEXs) The DRAM coins will be accessible on decentralized exchanges like Uniswap, Sushiswap, and Pancakeswap. Additionally, Naheta’s team has plans to forge partnerships with centralized exchanges in the near future.
This cryptocurrency is expected to generate significant interest in the UAE, primarily due to the country’s sizable expatriate community and its geographical proximity to several nations in Africa, the Middle East, and Asia, all grappling with elevated inflation rates.
While Emirati banknotes currently hold a modest position in the global economy, they have been gaining recognition as a more prominent petrocurrency in recent times. Naheta expressed his optimism about the UAE’s potential, comparing it to Switzerland with qualities such as geopolitical neutrality, an exceptional transportation hub, and a top-tier tourism destination.