There is no denying that the digital asset industry is set to get a major boost this year. Amid that activity, one BRICS nation is set to launch its very own stablecoin, and it will severely threaten the US dollar. With the market cap of the industry surpassing the $242 billion mark, the potential growth for the alliance’s native currency could be huge.
Specifically, it was the United Arab Emirates (UAE) that announced the arrival of a dirham-backed stablecoin. What makes it all the more interesting is that it becomes one of the major competitors to US dollar-backed stablecoins that have dominated the market. Its arrival could set off a new trend and certainly challenge the dominance of the greenback.
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UAE Stablecoin Set to Strengthen BRICS Cause, Hinder US Dollar Dominance
There is no denying that stablecoins have become a digital asset sector with immense potential. It provides a lot of the benefits of cryptocurrencies while still being financially backed by actual fiat. The combination of the two has made it a highly desirable point of entry for novice crypto investors.
Moreover, it represents an expanded use case as well. However, one of the biggest drawbacks internationally has been the dominance of US dollar-backed stablecoins. That is set to change majorly. Indeed, one BRICS nation has announced its own stablecoin as it prepares to challenge the US dollar’s status.
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The UAE is introducing its own dirham-based stablecoin regulated by its central bank. As a digital asset representing its national currency, it is a major step forward. Moreover, with the UAE’s position in the global economy, it could face massive adoption. They aren’t the only BRICS nation exploring the idea; Russia discussed the potential for its own crypto stablecoin earlier this year.
The move would be another key de-dollarization step for the economic alliance. It could allow greater competition, not only in the stablecoin market but in the crypto sector as a whole. The presence of national currencies to be represented in this way could allow other currencies to get a major bump. Additionally, they could benefit from a US dollar that has struggled mightily this year.