The Dubai government has signed an agreement with Crypto Exchange Crypto.com to begin crypto payments for presidency services.
The agreement, which was formalized in the course of the Dubai Fintech summit on May 12, is an element of Dubai's cashless strategy, which would really like to advertise the transition of town to a “fully digital, cashless society” by introducing “a brand new digital payment channel on its official platforms”, said the finance ministry of Dubai (DOBAI) on May 12.
As soon because the service is live, individuals and business customers of presidency corporations pays service fees with crypto about digital wallets from Crypto.com. According to the DOF, the payments are converted into Dirham and transferred to DOF accounts.
Amna Mohammed Lootah, director of the regulation for digital payment systems, said that Dubai's plan for 90% of economic transactions in private and non-private sector must be operated by cashless methods by 2026.
“We are confident that this milestone will significantly speed up the further development of Dubai's cashless strategy,” she said.
The DOF has not expressly mentioned which crypto it will accept, but said that the payments may very well be made with “stable cryptocurrencies”, which can indicate that stable coins will probably be permitted.
On April 28, a trio by Major Abu Dhabi Institutions, including the Souverign Wealth Fund of the Emirat, announced a plan to begin a brand new stable coin with Dirham Peged.
Duiba's strategy hopes to spark the expansion of the FinTech sector
The city's cashless strategy was first announced in October 2024. At that point, the DOF said that 97% of all government payments were already digital in 2023.
According to the DOF, the strategy was also predicted that at the least 8 billion dirhams (2.1 billion US dollars) added to the economy, which is powered by the event of economic technology services and the accelerated expansion of the FinTech sector in Dubai.
Ahmad Ali Meftah, executive director of the Central Accounts sector at DOF, said in a proof that the federal government continues to be actively developing a regulatory framework that “promotes innovation and at the identical time ensures the best safety and efficiency standards in digital financial transactions.
Ahmad Ali Meftah (left) said that the federal government continues to be working on a crypto regulatory framework. Source: Financial Department Dubai
Dubai is taken into account a crypto -friendly city. The Emirate organized the Dubai edition of TOKEN2049 between April 30 and May 1 of this 12 months.
In the meantime, the Dubai government began the pilot phase of a project on March 19 to convert real estate goods into digital tokens on the blockchain.
Other governments have also hovered with crypto for payments. A New York legislator introduced laws in April to enable state authorities to just accept crypto payments.
