BE - September 2026

Stablecoin Innovation ISSUE 213 SEPTEMBER 2026 the BANKING EXECUTIVE 15 DEPLOYMENT IN LEBANON Lebanon does not currently have a dedicated legal framework for stable- coins, nor does it have a licensed do- mestic stablecoin issuer. The regulatory environment remains a gray area, with Banque du Liban (BDL) and other authorities not yet is- suing comprehensive stablecoin reg- ulations. While banks and licensed financial institutions face restrictions regarding cryptocurrency activities, no formal stablecoin licensing regime currently exists. Despite the lack of regulation, stable- coin adoption in Lebanon has grown significantly following the country's financial and banking crisis. The sharp depreciation of the Lebanese pound, banking restrictions, and lim- ited access to U.S. dollars have en- couraged many individuals and businesses to use dollar-pegged sta- blecoins, particularly USDT (Tether), as a means of preserving value, re- ceiving remittances, and conducting international transactions. Several re- ports describe USDT as functioning informally as a digital dollar within parts of the Lebanese economy. For businesses, stablecoins offer faster and cheaper international transfers than traditional banking channels. For individuals, they pro- vide an alternative store of value amid currency instability and capital controls. However, users operate with limited regulatory protection because stablecoin activities remain largely outside Lebanon's formal fi- nancial framework. Stablecoin Deployment in Arab Countries Country United Arab Emirates (UAE) Bahrain Saudi Arabia Qatar Oman Kuwait Jordan Egypt Morocco Other Arab Countries Stablecoin Status Fully active and regulated Active regulatory deployment Developing digital currency ecosystem Exploring digital asset regulation Emerging digital asset market Limited deployment Early-stage adoption Cautious approach Regulatory exploration Limited or experimental activity Regulatory Framework CBUAE, VARA (Dubai), ADGM, DIFC frameworks Central Bank of Bahrain (CBB) Stablecoin Issuance and Offering Framework Focus on digital assets and CBDC initiatives Regulatory development stage Developing virtual asset regulations Restrictive crypto environment Regulatory assessment stage Digital finance and fintech expansion Developing crypto framework Varies by jurisdiction Notable Development AE Coin became the first regulated AED-backed stablecoin; comprehensive licensing, reserve, audit, and redemption requirements are in place Dedicated stablecoin framework allows issuance of BHD-, USD-, and other approved fiat-backed stablecoins. Active in digital finance and blockchain develop- ment, but no dedicated national stablecoin issuance framework identified in the sources reviewed. Interest in blockchain and digital finance, with stablecoin activities remaining limited compared with UAE and Bahrain. Building a digital asset ecosystem with limited public stablecoin deployment. Stablecoin activity remains limited and highly regulated. Monitoring developments in digital assets and fintech innovation. Focus remains on financial technology development rather than stablecoin issuance. Exploring digital asset regulation while maintaining cautious oversight. Most are studying digital assets and blockchain applications but have not established dedicated stablecoin issuance frameworks.