Dirham-Backed Digital Currency Tested for Consumer Bill Payments
The United Arab Emirates is taking another step toward regulated digital payments as telecom leader e& begins a pilot exploring the use of a dirham-pegged stablecoin for everyday financial transactions. The initiative, developed through a memorandum of understanding with Al Maryah Community Bank, aims to determine whether regulated payment tokens can support high-volume consumer services.
Stablecoin Integration Across Telecom Services
Under the new agreement, e& will evaluate how AE Coin, a Central Bank–licensed stablecoin, can be embedded into its extensive digital ecosystem. The trial spans several touchpoints, allowing customers to settle mobile and home-service bills, top up prepaid accounts and manage postpaid balances using the token.
The company noted that future phases may extend to e-commerce channels, potentially positioning the stablecoin as an alternative payment method across one of the country’s largest consumer networks. Executives emphasized that the technology enables instant settlement, transparent transactions and simplified access to digital payments.
Regulated Digital Finance in the UAE
The pilot reflects the country’s broader strategy to advance licensed virtual asset services under clear regulatory oversight. AE Coin, developed by AED Stablecoin, was among the first projects to receive in-principle approval under the Central Bank’s Payment Token Service Regulation, marking a milestone for the UAE’s emerging stablecoin market.
While the program remains exploratory an MoU indicates intent rather than finalized deployment—it represents a meaningful test case. If successful, it could demonstrate how regulated stablecoins can operate quietly within everyday financial infrastructure supporting mainstream payments without disruption to user experience.
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