The telecom giant e& from the United Arab Emirates is reportedly set to test the viability of regulated stablecoins for mainstream consumer payments, having signed a memorandum of understanding (MoU) with Al Maryah Community Bank to explore utilizing a dirham-pegged stablecoin across its digital channels.
As per a Gulf News report, executives framed this collaboration as a part of the UAE’s effort to advance regulated digital finance. Hatem Dowidar, CEO of e& Group, expressed that the stablecoin facilitates “instant settlement, complete transparency, and frictionless access.”
The CEO of Al Maryah Community Bank, Mohammed Wassim Khayata, characterized the initiative as a progression toward broadening the “real-world applications” of licensed virtual assets.
While this development highlights a burgeoning interest in blockchain-based financial infrastructures, the initiative remains in the early pilot phase, which places it several stages away from large-scale real-world adoption.
Testing of dirham-backed stablecoin payments by e&
According to the agreement, e& will evaluate how AE Coin, a dirham-backed stablecoin authorized by the Central Bank of the UAE (CBUAE), can be integrated into the telecom giant’s payment systems.
This trial will enable customers to utilize the token for mobile and home service bill payments, topping up prepaid accounts, managing postpaid recharges, and interacting with e&’s digital platforms and smart service systems.
The company indicated it would also contemplate adding e-commerce touchpoints with the token in the future, positioning the stablecoin as a viable alternative payment option within one of UAE’s most frequently used consumer ecosystems.
Ramez Rafeek, general manager of AED Stablecoin, which is behind the dirham-pegged token, stated that the stablecoin was developed to enable instant, transparent, and regulated digital payments.
He deemed the agreement a significant milestone in implementing licensed stablecoins for essential consumer services.
Related: Australian regulator eases rules for stablecoins and wrapped tokens
As previously reported by Cointelegraph, AED Stablecoin was one of the first companies to achieve in-principle approval from the CBUAE within its Payment Token Service Regulation framework.
This preliminary approval positioned the company as a frontrunner in the region’s stablecoin landscape.
Despite the optimistic outlook, the initiative remains exploratory in nature. An MoU typically indicates intent instead of concrete execution, meaning that timelines, rollout scope, and measurable impact are still undefined.
Nonetheless, if the pilot proves successful, it could validate a model where regulated tokens seamlessly facilitate everyday financial activities behind the scenes.
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