Latest news with #EuroCoin
Gulf Today
22-03-2025
- Business
- Gulf Today
Dubai on track to adopt digital currencies
Dubai is on the right track by adopting the digital currencies as the increasing number of firms taking benefits of simplifies global trade through digital coins. The recent approval of Circle Internet Group's USD Coin (USDC) and Euro Coin (EURC) as recognized crypto tokens in the Dubai International Financial Centre (DIFC) is a step ahead. This was stated by Lluis Mas, Chairman of Belobaba while talking to media in Dubai and added that 'Dubai's reputation as a global leader in blockchain and fintech adoption is strengthen as over 6,000 firms in the DIFC can now incorporate USDC and EURC into their operations which can boost confidence in digital finance by ensuring regulatory oversight.' He further mentioned that 'many digital currencies come with a bit of instability because they are volatile and unpredictable. That's not the case with Stablecoins like USDC and EURC. These currencies have ties to stable assets, like the US dollar or the euro. This makes them more reliable than other cryptocurrencies,' he added. He mentioned that through these tokens, one can make global payments with ease, low charges and the best part is that people can use Stablecoins for daily transactions as well. Luis Mas mentioned that many countries now using Stablecoins, and the results are promising. 'Stablecoins provide a secure store of value for regions experiencing high inflation. In the meantime, governments are modifying their policies to take advantage of the benefits and ensure adherence.' 'As Stablecoins become more mainstream in the UAE's financial ecosystem, they can unlock new opportunities for businesses and individuals alike. By simplifying payments and encouraging innovation, Stablecoins could be the key to making Dubai a leader in global digital finance,' he said. In case of UAE, businesses and individuals can now enjoy quicker, more secure digital transactions while it encourages foreign investments and attracts global fintech companies to set up their businesses in Dubai. This step brings the UAE closer to becoming a digital finance powerhouse, setting an example for other nations to follow.
Arabian Business
05-03-2025
- Business
- Arabian Business
Nod for stablecoins USDC and EURC to accelerate UAE's emergence as a crypto powerhouse, say experts
Dubai Financial Services Authority's (DFSA) move to approve Circle Internet Group's stablecoins USD Coin (USDC) and Euro Coin (EURC) as recognised crypto tokens within the Dubai International Financial Centre (DIFC) will be a game changer for crypto adoption in the UAE as it offers businesses efficient, compliant tools for digital finance, sector experts said. The move will also potentially accelerate the region's emergence as a crypto powerhouse, besides posing a challenge to Tether's USDT dominance, leading to reshaping the over $200 billion stablecoin market globally, they said. The US-based stablecoins market leader Circle said with the DFSA approval last week – February 24 – financial institutions and fintechs operating in the DIFC can integrate USDC and EURC into their digital asset services, payments, treasury management, and a range of other financial applications. USDC is a cryptocurrency stablecoin pegged to the US dollar, while EURC is a euro-backed stablecoin. The DFSA's decision will enable over 6,000 DIFC firms to use these stablecoins for payments and treasury functions legally. 'The approval of USDC and EURC as the first stablecoins under Dubai's new crypto framework positions Dubai as a blockchain innovation hub,' Ryan Lee, Chief Analyst at Bitget Research, told Arabian Business. 'For crypto adoption, it's a game-changer in the UAE – already third globally in adoption,' he said. Lee said this move enhances trust in stablecoins amid regional volatility, besides boosting Circle's competitive stance against Tether's USDT dominance. Dr. Mohamed Damak, Managing Director and Financial Institutions Sector Lead, S&P Global Ratings, said they expect that the role of stablecoins will continue to evolve and could eventually lead to more integration between traditional finance and decentralised finance. 'For example, [there could be more integration] in the case of cross-border payments, the tokenisation of real-world assets (RWA), or the issuance of digital bonds,' Damak told Arabian Business. DIFC's stablecoin integration move Damak said the approval allows financial institutions and fintech firms in the DIFC to use USDC and EURC in their services for payment, treasury management, etc., potentially resulting in an increase of the adoption of USDC and EURC by DIFC-based entities. He, however, pointed out that while EURC is regulated in Europe under MiCA (Market in Crypto Assets regulation), there is no regulatory framework at the federal level in the US, though the momentum around that is building with three proposals under consideration currently. In an Executive Order in January, President Donald Trump outlined the new US administration's focus on developing privately issued regulated stablecoins, rather than a central bank digital currency (CBDC). 'In our view, once a regulation is approved in the US, the use of stablecoins in regulated financial market applications such as digital bonds and tokenised money market funds has the potential to scale. 'In this context, the implementation of the necessary regulations, including the Virtual Assets Regulatory Authority (VARA), the regulation of stablecoins by the central bank and by DFSA in DIFC and FSRA in ADGM and crypto-friendly free zones could enhance market conditions for investors,' the S&P Global Ratings senior executive said. Karl Naïm, Global Head of BD & GM Middle East at XBTO Middle East, a leading digital asset firm, said though the DFSA decision is highly significant, it is pertinent to understand that this is not a UAE-wide approval. 'The decision is a characteristically measured approach to financial innovation and creates a regulatory sandbox within DIFC's boundaries where financial institutions can confidently integrate regulated stablecoins into specific operations,' Naïm told Arabian Business. 'What the DFSA is doing is essentially creating a test case for stablecoin regulation that will likely influence how other UAE jurisdictions approach these assets,' he said. Move to boost DIFC's competitive position The XBTO Middle East senior executive said the DFSA's decision will enhance the DIFC's competitive position in the increasingly contested market for digital asset regulation. 'This also has a positive knock-on effect for both Dubai and the UAE,' he said. Naïm said without committing the entire emirate to a particular regulatory approach, the financial free zone demonstrates its capacity to integrate digital assets into a sophisticated regulatory framework. 'This precision is a favourable contrast with many jurisdictions, where the status quo remains grappling with fundamental questions of stablecoin classification. 'This approach also complements Dubai's broader crypto regulatory architecture, including VARA's oversight outside financial free zones and the central bank's developing framework for payment tokens and an AED-backed stablecoin,' he said. As for the wider use of USDC and EURC, Naïm said a measured adoption curve appears more probable than any immediate surge, with business necessity rather than regulatory permission the most important factor. 'Financial institutions will likely look to implement these regulated stablecoins where they solve specific problems, with treasury operations and cross-border settlements the most obvious use cases where the efficiency gains justify the implementation costs, and compliance risks are most manageable,' he said.
