In a groundbreaking move, Akshay Naheta, a former executive at SoftBank, has unveiled a new stablecoin pegged to the United Arab Emirates Dirham (UAE). This innovative financial instrument, named DRAM coins, is designed to offer stability in countries grappling with high inflation rates. Moreover, it aims to cater to the unbanked and underbanked populations, offering them a reliable financial solution.
A new approach to stablecoins: The UAE Dirham peg
While the majority of recent entrants in the stablecoin arena have been focusing on USD-pegged coins, Naheta’s approach is refreshingly different. By pegging the stablecoin to the UAE Dirham, Naheta is positioning the coin to leverage the growing influence of the Emirati currency in the global financial landscape.
Naheta, a 42-year-old financial expert, has strategically set up DTR in the international financial free zone of the emirate. In this venture, he has collaborated with DRAM Trust, a Hong Kong-based organization with ties to several high-net-worth individuals. The partnership is poised to tap into the burgeoning stablecoin market, which, according to Bernstein analysts, is projected to surge over twentyfold, reaching a staggering $2.8 trillion in the next half-decade.
The primary objective of DRAM coins is to offer a stable financial solution to countries like Turkey, Egypt, and Pakistan, where inflation rates are soaring. Naheta, in a recent interview, emphasized the coin’s potential, stating, “Our main focus is the unbanked and underbanked in these nations. If you want to diversify your risk and be in a currency that’s complimentary to the dollar, there’s a big percentage of money that can move into this.”
Availability and future collaborations: DRAM coins on the rise
Ensuring accessibility is key to the success of any cryptocurrency. To this end, DRAM coins will soon be available on prominent decentralized exchanges, including Uniswap, Sushiswap, and Pancakeswap. But the team isn’t stopping there. Naheta has also expressed intentions to partner with centralized exchanges in the foreseeable future, further expanding the coin’s reach and adoption.
The UAE, with its vast expatriate community and close proximity to several high-inflation nations in Africa, the Middle East, and Asia, is expected to show a keen interest in this cryptocurrency. The country’s strategic location and the challenges faced by its neighboring nations make it a prime candidate for the adoption and success of DRAM coins.
The rising prominence of the Emirati Dirham
While the Emirati Dirham currently occupies a relatively modest position in the global economy, its stature has been steadily rising. In recent times, it has garnered attention as an increasingly dominant petrocurrency. This shift is indicative of the UAE’s growing influence in the financial world, a fact that Naheta is keenly aware of.
Drawing parallels with another global financial hub, Naheta remarked, “We’re moving into a whole new and rewired financial system where the dirham will be a big player. I’m extremely bullish on the UAE. It’s the new Switzerland – geopolitically neutral, a great transportation hub, and a top tourism destination.”
Conclusion
The introduction of DRAM coins is not just a testament to the innovative spirit of financial experts like Naheta but also a reflection of the changing dynamics of the global financial system. As countries like the UAE continue to rise in prominence, instruments like DRAM coins will play a pivotal role in shaping the future of finance, offering stability and inclusivity to those who need it most.
