- Abu Dhabi integrates AE Coin stablecoin into taxis, pioneering smart city payments.
- AEC Wallet enables secure, fee-free transactions, boosting financial inclusion.
- AE Coin gains traction in sectors like aviation, signaling broader UAE adoption.
In a landmark development, Abu Dhabi has become the first city in the world to integrate a stablecoin pegged to its national currency into public transportation payments. Residents and visitors can now pay for taxi rides using AE Coin, a digital currency fully backed by the UAE dirham.
This initiative represents a significant stride in the city’s ambition to build a digitally connected transportation network and reinforces the UAE’s broader vision for financial innovation.
Regulators and Banks Drive Real-World Adoption
This world-first project is a public-private partnership between Abu Dhabi’s Integrated Transport Center (ITC), the private operator Tawasul Transport, and Al Maryah Community Bank (Mbank).
Passengers can now make secure payments by using the AEC Wallet app to scan a QR code inside any Tawasul taxi. The system is designed to be seamless, secure, and to promote the adoption of cashless transactions across the city.
Stability and Simplicity: The Core of the Initiative
A key feature of the project is the use of a stablecoin. The AE Coin maintains a strict 1:1 peg with the UAE dirham, which ensures that the value of the transaction remains stable, eliminating the price volatility often associated with cryptocurrencies. This provides an added layer of confidence for users, particularly those unfamiliar with digital assets.
“This initiative supports the city’s goal to offer simplified, secure, and flexible payment methods,” said Ghena Jbour, General Manager of Tawasul Transport. “It’s more than a payment upgrade; it’s a commitment to sustainability and customer convenience.”
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The project is more than a payment upgrade, it’s a commitment to sustainability and customer convenience. By offering crypto as a payment option, Abu Dhabi caters to an increasingly digital-savvy population seeking modern financial solutions.
The AEC Wallet, available on all major app stores, allows users to transact without incurring heavy transfer fees, a move aimed at promoting financial inclusion.
A Foundational Step in the UAE’s Digital Strategy
While the taxi launch is a milestone, it is part of a much larger strategy. Mohammed Wassim Khayata, CEO of Mbank, views this as a foundational step in building the UAE’s digital economy.
He emphasized that AE Coin is not just another cryptocurrency but a key tool in enhancing real-time, secure payments across various sectors. Mbank plans to expand the AEC Wallet’s use beyond transport, bringing it to retail, aviation, and public services.
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Already, AE Coin has found acceptance beyond taxis. Air Arabia, a major UAE-based airline, has begun accepting AE Coin for flight bookings. This development positions the stablecoin as a legitimate and regulated option for mainstream use.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
