Sonic Labs cancels US dollar pegged algorithmic stablecoin plan

On March 29th, according to Cointelegraph, Sonic Labs cancelled its plan to launch an algorithmic stablecoin pegged to the US dollar and instead chose to develop an alternative stablecoin product denominated in UAE dirhams. Sonic Labs co-founder Andre Cronje confirmed the relevant news on X platform and stated, "We will no longer issue algorithmic stablecoins pegged to the US dollar, but will issue alternatives related to digital dirhams, which are settled in US dollars but are definitely not based on US dollar algorithmic stablecoins." It is reported that the United Arab Emirates has previously announced that it will launch a central bank digital currency (CBDC) digital dirham in the fourth quarter of 2025.