e& Embraces Dirham Stablecoin for Bill Payment Pilot

UAE telecom giant e& is launching a pilot program to test the use of a dirham-pegged stablecoin for consumer payments. This venture follows a memorandum of understanding with Al Maryah Community Bank, aiming to integrate regulated digital finance into everyday transactions.

Key Takeaways

e& is piloting a dirham-pegged stablecoin for various consumer payments.
The initiative focuses on enhancing digital finance in the UAE.
The pilot is at an early stage and requires further developments for large-scale implementation.
The stablecoin aims to provide instant settlement, transparency, and ease of access.

UAE telco giant e& taps dirham stablecoin for bill payments pilot

Dirham-Backed Stablecoin Payments Tested by e&

As part of its innovative approach, e& has signed an agreement to explore the integration of AE Coin—a dirham-backed stablecoin approved by the Central Bank of the UAE (CBUAE)—into its payment systems.

This pilot program will allow customers to utilize the stablecoin for multiple services, including paying mobile and home service bills, topping up prepaid lines, managing postpaid recharges, and engaging with e&'s digital platforms and smart service systems.

Additionally, e& has plans to incorporate this stablecoin into e-commerce interfaces in the future, positioning it as a viable alternative payment method within one of the UAE's leading consumer ecosystems.

Ramez Rafeek, general manager of AED Stablecoin—the entity behind the dirham-pegged digital currency—discussed the stablecoin's purpose of enabling immediate, transparent, and regulated digital payments. He emphasized that this agreement marks a significant milestone for licensed stablecoins in critical consumer services.

As previously reported by Cointelegraph, AED Stablecoin was among the first companies to gain preliminary approval from CBUAE under the Payment Token Service Regulation framework, establishing itself as a leader in the region's stablecoin development.

Despite the promising outlook, it is essential to recognize that this initiative is still in the exploratory phase. A memorandum of understanding typically indicates intent rather than guaranteed implementation, meaning that the timeline, scope of rollout, and measurable effects are still to be defined. However, if successful, this pilot program could validate a model where regulated tokens facilitate everyday financial activities seamlessly.