What Problems Does AEDX Solve?

AEDX is designed to address key financial challenges in the UAE and beyond, providing a stable and efficient alternative to traditional financial systems. Here’s how AEDX tackles some of the most pressing issues:

1. High Operating Costs for Businesses

Businesses in the UAE often incur significant expenses when exchanging AED for USD or other currencies to facilitate global trade. These currency conversion costs reduce profitability and create inefficiencies in cross-border transactions. AEDX eliminates the need for costly conversions by providing a stable, AED-backed digital asset that businesses can use for seamless international payments, reducing overhead and increasing competitiveness.

2. Reducing Dependence on USD-Backed Stablecoins

Over 98% of the global stablecoin market is backed by USD, reinforcing American economic dominance. This reliance exposes the UAE to external economic shifts and limits the AED’s influence in global markets. AEDX offers a homegrown, AED-pegged alternative, strengthening the local economy and providing financial independence from USD-backed digital assets.

3. Lowering the Costs of Remittances

With AED 147.8 billion ($40.2 billion) in outward remittances recorded in 2021, cross-border money transfers are a major financial activity in the UAE. However, high remittance fees (averaging 4.31%) disproportionately impact expatriates and low-income workers. AEDX enables low-cost, near-instant international transfers, ensuring that more of the sender’s hard-earned money reaches their families without excessive fees.

4. Expanding Financial Access and Inclusion

Around 1.7 million people in the UAE (32% of the population) are unbanked, lacking access to formal financial services. Traditional banking systems often overlook lower-income individuals and fail to address key social needs. AEDX provides a secure and accessible financial tool, allowing anyone with a smartphone to store, send, and receive digital AED without requiring a traditional bank account. This fosters financial inclusion and unlocks new opportunities for underserved communities.

By addressing these challenges, AEDX paves the way for a more efficient, inclusive, and resilient financial ecosystem in the UAE and beyond.