Swiss-based blockchain firm DTR launches Dirham-backed stablecoin
Swiss-based blockchain firm Distributed Technologies Resources (DTR) has announced the launch of a new stablecoin called DRAM. The token, which is backed by the United Arab Emirates (UAE) national currency Dirham, was officially launched on October 3, 2023.
According to Akshay Naheta, the founder of DTR and a former SoftBank executive, the DRAM stablecoin aims to facilitate seamless cross-border value transfers for users in regions outside of the UAE. The token has already been listed on popular decentralized exchange platforms Uniswap and PancakeSwap, with trading pairs using Binance Coin (BNB).
Naheta revealed that the development of the DRAM stablecoin has been underway for the past 10 months and is now being unveiled after achieving significant milestones. The stablecoin, which is built on the ERC-20 token standard, allows for one-to-one exchange with the Dirham, making it fungible.
It is worth noting that while the DRAM stablecoin is not accessible to users in the UAE and Hong Kong, DTR is currently in discussions with other regions to provide liquidity to centralized crypto operations within their ecosystems.
UAE government’s push towards CBDC and partnership with RBI
As DTR introduces the DRAM stablecoin, the UAE government has been actively working towards the development of its own central bank digital currency (CBDC). The UAE government recently announced a partnership with the Reserve Bank of India (RBI) to create a CBDC bridge, enabling seamless value exchange and remittances between the two countries.
This collaboration between the UAE and India was solidified through a memorandum of understanding (MoU) signed on March 15, 2023, by banking officials from both nations. The aim is to enhance cross-border financial transactions and promote economic cooperation.
DTR’s journey and focus on the UAE Dirham
Distributed Technologies Resources (DTR) is a blockchain firm that officially started its operations in 2019. The company initially focused on developing a decentralized payment platform called „Unit-e.“ Although the protocol garnered interest from academics and researchers from prestigious institutions like Stanford University and MIT, it did not achieve widespread adoption.
Learning from this experience, DTR shifted its focus to meet the demands of the market. According to Akshay Naheta, the founder of DTR, the UAE Dirham was chosen as the backing currency for the DRAM stablecoin due to the strong economy of the Middle Eastern nation and the growing interest in stable digital asset investments in the region.
The UAE has positioned itself as a growing blockchain and financial hub, attracting various businesses and crypto companies. With its Virtual Asset Regulatory Authority (VARA), the UAE offers a favorable environment for crypto businesses to operate. Major players like Binance have already established a presence in the country, while others are considering moving their operations there.
Crypto adoption in the UAE
According to a recent report by blockchain security services firm Chainalysis, crypto adoption in the Middle East, particularly in the UAE, has increased significantly over the past year. The UAE ranks second in terms of decentralized exchange (DEX) activity, trailing only behind Israel. This indicates the growing interest in cryptocurrencies and blockchain technology in the country.
Overall, the launch of the DRAM stablecoin by Distributed Technologies Resources (DTR) brings a new opportunity for cross-border value transfer and further strengthens the UAE’s position as a leading blockchain and financial hub in the region.
Frequently Asked Questions
Q: What is the DRAM stablecoin?
A: The DRAM stablecoin is a digital token backed by the United Arab Emirates (UAE) national currency, the Dirham. It aims to facilitate cross-border value transfers for users outside of the UAE.
Q: On which decentralized exchange platforms is the DRAM stablecoin listed?
A: The DRAM stablecoin is listed on popular decentralized exchange platforms Uniswap and PancakeSwap, with trading pairs using Binance Coin (BNB).
Q: Is the DRAM stablecoin accessible to UAE users?
A: No, the DRAM stablecoin is not accessible to users in the UAE and Hong Kong. Distributed Technologies Resources (DTR) is currently in discussions with other regions to provide liquidity to centralized crypto operations within their ecosystems.
Q: What is the UAE government’s partnership with the Reserve Bank of India (RBI) about?
A: The UAE government and RBI have partnered to create a central bank digital currency (CBDC) bridge, enabling seamless value exchange and remittances between the two countries.
Q: Why did DTR choose the UAE Dirham as the backing currency for the DRAM stablecoin?
A: According to DTR founder Akshay Naheta, the choice of the UAE Dirham was easy due to the nation’s strong economy and the growing interest in stable digital asset investments in the region.
Q: What is the status of crypto adoption in the UAE?
A: Crypto adoption in the UAE has increased significantly in the past year. According to a report by Chainalysis, the UAE ranks second in decentralized exchange (DEX) activity, indicating a growing interest in cryptocurrencies and blockchain technology in the country.
