Sonic Labs has decided to forgo its initial plan to introduce a US dollar-pegged algorithmic stablecoin and is now focusing on developing an alternative stablecoin denominated in the United Arab Emirates dirham. The company’s co-founder, Andre Cronje, initially announced on March 22 about the US dollar-pegged stablecoin with an APR of up to 23%. However, just a week later, the company made a complete U-turn. Cronje stated in a March 28 post that they would not be launching a USD-based algorithmic stablecoin but instead would introduce a mathematically bound numerical Dirham settled and denominated in USD. This shift in strategy coincides with the UAE’s announcement of launching its digital dirham central bank digital currency (CBDC) by the fourth quarter of 2025. Governor Khaled Mohamed Balama of the Central Bank of the UAE highlighted that the blockchain-based dirham could contribute to financial stability and combat financial crime. The digital currency will be integrated into all payment channels alongside its physical counterpart. Sonic faced backlash over its stablecoin plans due to the controversy surrounding algorithmic stablecoins following the collapse of the Terra ecosystem in 2022. The collapse of Terra’s algorithmic stablecoin, TerraUSD (UST), and the subsequent plummet of the sister token LUNA raised concerns in the cryptocurrency industry. The European Union’s Markets in Crypto-Assets Regulation (MiCA) bill aims to prevent similar failures by prohibiting algorithmic stablecoins. CoinFund managing partner David Pakman noted a shift in stablecoin usage towards smaller, everyday payments rather than large transfers. This redirection aligns with the evolving landscape of stablecoin transactions.<\/p>\n","protected":false},"excerpt":{"rendered":"
Sonic Labs has decided to forgo its initial plan to introduce a US dollar-pegged algorithmic stablecoin and is now focusing on developing an alternative stablecoin denominated in the United Arab Emirates dirham. The company’s co-founder, Andre Cronje, initially announced on March 22 about the US dollar-pegged stablecoin with an APR of up to 23%. However, […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[25],"tags":[],"aioseo_notices":[],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":""},"author_info":{"display_name":"","author_link":"https:\/\/vanillanews.com\/index.php\/author\/"},"category_info":"JUST IN<\/a>","tag_info":"JUST IN","comment_count":"0","_links":{"self":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts\/84550"}],"collection":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/comments?post=84550"}],"version-history":[{"count":0,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts\/84550\/revisions"}],"wp:attachment":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/media?parent=84550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/categories?post=84550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/tags?post=84550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}