Tether's announcement that it plans to launch a dirham-pegged stablecoin in the UAE shows confidence in the country's cryptocurrency regulatory landscape, which can serve as a model for other countries seeking to tap into one of the components of the future of finance.
The stablecoin, which is expected to take months to be licensed, will be launched in partnership with Abu Dhabi-based Phoenix Group and Green Acorn Investments.
It is expected to streamline international trade and remittances, reduce transaction fees and provide a hedge against currency fluctuations, Tether said.
“The diverse and responsive regulatory environment in the UAE is highly conducive to innovation and will accelerate maturity in the space,” Arushi Goel, policy lead for the Middle East and Africa at blockchain company Chainalysis, told The National.
“As a result, the UAE could also serve as a model for other regions, showcasing how to effectively regulate stablecoins and other crypto assets.”
What is a stablecoin?
A stablecoin is a type of cryptocurrency that is pegged to a fiat currency – Tether has been designed to be always equivalent to $1 – and tends to be less volatile unlike Bitcoin, where wild swings are influenced by simple factors such as tweets.
They aim to address cryptocurrencies' shortcomings by pegging their value to a unit of an underlying asset, are often issued on faster blockchains and backed by state-issued tenders such as the dollar, pound, euro and highly liquid reserves including government treasuries or commodities such as precious metals.
Also, a stablecoin is different from a central bank digital currency: the former is privately issued, while the latter is government-backed. Both, however, aim to make transactions faster, cheaper and more secure.
About $2.2 trillion worth of stablecoin transactions were reported in April alone, according to a recent Visa study.
How big is Tether?
Tether is, without a doubt, the biggest stablecoin in the world, commanding about two thirds of the market, CoinMarketCap data shows.
As of Thursday, Tether has a market capitalisation of about $117.4 billion – more than the combined values of every other stablecoin, which total 182, according to the cryptocurrency tracking website.
Tether also has stablecoins pegged to the euro, yuan, Mexican peso and gold.
What does the UAE say about stablecoins?
The UAE Central Bank's latest regulation on stablecoins is expected to establish a clear operational framework for cryptocurrencies when introduced next year and usher in the mainstream acceptance of decentralised currencies within the country.
The new crypto regulation, issued last month, will only allow businesses and vendors in the Emirates to accept cryptocurrencies for goods and services if they are dirham-backed stablecoins.
How close are stablecoins becoming mainstream?
The central bank's payment token services regulations provide for a licensing regime for offering payment token services for dirham-backed tokens, as well as a registration regime for a foreign currency-backed payment token.
By offering clear regulations for using stablecoins as payment instruments, the UAE is creating a conducive atmosphere for businesses to establish themselves and contribute to the growth of the crypto ecosystem, Ms Goel said.
The push is also being driven by several other factors, which include demand and the actual supply for stable digital assets, which can be used every day, said Rudy Shoushany, founder of DxTalks and CryptoTalks.
This is the reason why stablecoins, especially Tether, are famous and are preferable to much more volatile cryptocurrencies, most notably Bitcoin, Mr Shoushany, who is also a top thought leader and adviser, told The National.
“Bitcoin, one day it's $60,000, another day it's $40,000; transaction-wise, this is unbearable. So if you want to do any business [with it], it's going to be very hard. So [businesses] need a stable [digital] currency.”
What would stablecoins mean for cross-border transactions?
Digital assets, such as cryptos and stablecoins, have long been touted to be able to transfer value across borders, bypassing traditional banking systems and eliminating many associated risks and middlemen.
For consumers, this is more advantageous and “revolutionary”: with minimal or sometimes zero fees, almost instantaneous processing and faster settlement, the use of stablecoins for cross-border transactions can hasten their critical needs, Mr Shoushany said.
It also reduces currency volatility since stablecoins are pegged to a fixed asset and make it, as its name implies, stable, he added, which can assist people whose livelihood depends on important transactions such as remittances.
The UAE is one of the top sources of remittances globally, ranking second behind the US in 2020, according to the World Bank. The Washington-based global lender's 2022 list did not include the Emirates as its data was not updated.
The gradual adoption of stablecoins issued by traditional institutions could bring increased liquidity, stability and faster integration of tokenised assets into the mainstream financial system, a 2024 white paper from US blockchain company Ripple shows.
They would also promote financial inclusion, as sending money home “could be significantly [more] efficient … and we are talking about billions and billions of homes”, Mr Shoushany said.
Can the UAE become a model for stablecoin implementation?
The short answer is yes, considering all the efforts placed into creating frameworks and regulations to build and support the sector.
“The UAE has a unique crypto landscape, with a focus on regulatory clarity and ecosystem enablement … showcasing how to effectively regulate stablecoins and other crypto assets,” Ms Goel said.
However, there remain challenges in the adoption of cryptocurrencies in general, especially when there is a lack of clarity within the rules.
Mr Shoushany, as an example, cited El Salvador, which in 2021 became the first country to legally adopt Bitcoin as a legal tender. This drew criticism and protest over the lack of transparency over its management.
“We've seen different stablecoins being implemented left and right and they all failed; we have not seen one that's really successful,” … he said.
Arguably the biggest challenge for stablecoins would be pegging it to a volatile currency; the UAE, with its dirham pegged to the dollar, would have an advantage. In addition, the Emirates is heavily promoting the use of blockchain, the underlying technology of cryptocurrencies, in several vital industries.
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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THE RESULTS
5pm: Maiden (PA) Dh80,000 1,400m
Winner: Alnawar, Connor Beasley (jockey), Helal Al Alawi (trainer)
5.30pm: Maiden (PA) Dh80,000 1,400m
Winner: Raniah, Noel Garbutt, Ernst Oertel
6pm: Handicap (PA) Dh90,000 2,200m
Winner: Saarookh, Richard Mullen, Ana Mendez
6.30pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown (PA) Rated Conditions Dh125,000 1,600m
Winner: RB Torch, Tadhg O’Shea, Eric Lemartinel
7pm: Al Wathba Stallions Cup Handicap Dh70,000 1,600m
Winner: MH Wari, Antonio Fresu, Elise Jeane
7.30pm: Handicap Dh90,000 1,600m
Winner: Mailshot, Royston Ffrench, Salem bin Ghadayer
The Old Slave and the Mastiff
Patrick Chamoiseau
Translated from the French and Creole by Linda Coverdale
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Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.
Sholay: a 1975 Indian action-adventure film. It follows the adventures of two criminals hired by police to catch a vagabond. The film was panned on release but is now considered a classic.
Lucifer: is a 2019 Malayalam-language action film. It dives into the gritty world of Kerala’s politics and has become one of the highest-grossing Malayalam films of all time.
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
ENGLAND SQUAD
Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
UAE players with central contracts
Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
RESULTS
Catchweight 82kg
Piotr Kuberski (POL) beat Ahmed Saeb (IRQ) by decision.
Women’s bantamweight
Corinne Laframboise (CAN) beat Cornelia Holm (SWE) by unanimous decision.
Welterweight
Omar Hussein (PAL) beat Vitalii Stoian (UKR) by unanimous decision.
Welterweight
Josh Togo (LEB) beat Ali Dyusenov (UZB) by unanimous decision.
Flyweight
Isaac Pimentel (BRA) beat Delfin Nawen (PHI) TKO round-3.
Catchweight 80kg
Seb Eubank (GBR) beat Emad Hanbali (SYR) KO round 1.
Lightweight
Mohammad Yahya (UAE) beat Ramadan Noaman (EGY) TKO round 2.
Lightweight
Alan Omer (GER) beat Reydon Romero (PHI) submission 1.
Welterweight
Juho Valamaa (FIN) beat Ahmed Labban (LEB) by unanimous decision.
Featherweight
Elias Boudegzdame (ALG) beat Austin Arnett (USA) by unanimous decision.
Super heavyweight
Maciej Sosnowski (POL) beat Ibrahim El Sawi (EGY) by submission round 1.
RACE CARD
6.30pm: Handicap (TB) $68,000 (Dirt) 1,600m
7.05pm: Meydan Sprint – Group 2 (TB) $163,000 (Turf) 1,000m
7.40pm: Curlin Stakes – Listed Handicap (TB) $88,000 (D) 2,200m
8.15pm: UAE Oaks – Group 3 (TB) $125,000 (D) 1,900m
8.50pm: Zabeel Mile – Group 2 (TB) $163,000 (T) 1,600m
9.25pm: Balanchine – Group 2 (TB) $163,000 (T) 1,800m
10pm: Al Shindagha Sprint – Group 3 (TB) $130,000 (D) 1,200m
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
The%20Genius%20of%20Their%20Age
%3Cp%3EAuthor%3A%20S%20Frederick%20Starr%3Cbr%3EPublisher%3A%20Oxford%20University%20Press%3Cbr%3EPages%3A%20290%3Cbr%3EAvailable%3A%20January%2024%3C%2Fp%3E%0A
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
UAE currency: the story behind the money in your pockets
Sheikh Zayed's poem
When it is unveiled at Abu Dhabi Art, the Standing Tall exhibition will appear as an interplay of poetry and art. The 100 scarves are 100 fragments surrounding five, figurative, female sculptures, and both sculptures and scarves are hand-embroidered by a group of refugee women artisans, who used the Palestinian cross-stitch embroidery art of tatreez. Fragments of Sheikh Zayed’s poem Your Love is Ruling My Heart, written in Arabic as a love poem to his nation, are embroidered onto both the sculptures and the scarves. Here is the English translation.
Your love is ruling over my heart
Your love is ruling over my heart, even a mountain can’t bear all of it
Woe for my heart of such a love, if it befell it and made it its home
You came on me like a gleaming sun, you are the cure for my soul of its sickness
Be lenient on me, oh tender one, and have mercy on who because of you is in ruins
You are like the Ajeed Al-reem [leader of the gazelle herd] for my country, the source of all of its knowledge
You waddle even when you stand still, with feet white like the blooming of the dates of the palm
Oh, who wishes to deprive me of sleep, the night has ended and I still have not seen you
You are the cure for my sickness and my support, you dried my throat up let me go and damp it
Help me, oh children of mine, for in his love my life will pass me by.
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
Pros%20and%20cons%20of%20BNPL
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The bio
Job: Coder, website designer and chief executive, Trinet solutions
School: Year 8 pupil at Elite English School in Abu Hail, Deira
Role Models: Mark Zuckerberg and Elon Musk
Dream City: San Francisco
Hometown: Dubai
City of birth: Thiruvilla, Kerala
Student Of The Year 2
Director: Punit Malhotra
Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal
1.5 stars
Kill%20
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'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
Tips for SMEs to cope
- Adapt your business model. Make changes that are future-proof to the new normal
- Make sure you have an online presence
- Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
- Open communication with customers to see how they are coping and be flexible about extending terms, etc
Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
Closing the loophole on sugary drinks
As The National reported last year, non-fizzy sugared drinks were not covered when the original tax was introduced in 2017. Sports drinks sold in supermarkets were found to contain, on average, 20 grams of sugar per 500ml bottle.
The non-fizzy drink AriZona Iced Tea contains 65 grams of sugar – about 16 teaspoons – per 680ml can. The average can costs about Dh6, which would rise to Dh9.
Drinks such as Starbucks Bottled Mocha Frappuccino contain 31g of sugar in 270ml, while Nescafe Mocha in a can contains 15.6g of sugar in a 240ml can.
Flavoured water, long-life fruit juice concentrates, pre-packaged sweetened coffee drinks fall under the ‘sweetened drink’ category
Not taxed:
Freshly squeezed fruit juices, ground coffee beans, tea leaves and pre-prepared flavoured milkshakes do not come under the ‘sweetened drink’ band.
Third Test
Result: India won by 203 runs
Series: England lead five-match series 2-1
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