BRICS Nation UAE to Launch Dirham-Backed Stablecoin, Challenging US Dollar Dominance

The United Arab Emirates has announced plans to launch a dirham-backed stablecoin, marking a strategic move by BRICS nations to undermine the US dollar’s hegemony in digital asset markets. This development arrives as global stablecoin market capitalization exceeds $242 billion, with dollar-pegged tokens currently commanding overwhelming dominance.

Unlike previous BRICS currency initiatives, the UAE’s blockchain-based approach leverages existing cryptocurrency infrastructure for immediate real-world impact. The dirham stablecoin could disrupt cross-border settlements and trade finance—traditionally dollar-denominated domains—while providing a template for other BRICS members to follow.

Market analysts note the timing coincides with accelerating de-dollarization efforts worldwide. Stablecoins have emerged as a critical battleground, with Tether’s USDT and Circle’s USDC collectively controlling over 90% of the market. A successful UAE rollout may trigger similar sovereign crypto projects from BRICS allies.