Dubai to allow crypto payments for government services

Dubai is to allow individuals and businesses to use cryptocurrency to pay for government services.

Dubai Finance (DOF) has signed a Memorandum of Understanding (MoU) with Crypto.com, a global cryptocurrency trading platform, to enable the payment of government services fees using cryptocurrencies.

It marks a significant step in advancing digital finance on a global scale in the UAE.

The agreement was signed at the recent Dubai FinTech Summit. The DOF said that the partnership “supports the implementation of the Dubai Cashless Strategy by enabling secure and efficient financial transactions through cryptocurrencies”, adding that the move also “paves the way for Dubai’s transition to a fully digital, cashless society by empowering the Government of Dubai to introduce a new digital payment channel across its official platforms”.

Abdulla Mohammed Al Basti, Secretary-General of the Executive Council of Dubai, said that adopting secure cryptocurrency solutions within the Government of Dubai’s payment system reflects a proactive approach to anticipating future needs and responding to global economic and financial developments.

Al Basti said: “Dubai continues to advance through co-ordinated efforts across government entities and key sectors to meet and exceed the expectations of individuals, businesses, and the wider community.

“As a global leader in digital transformation, the emirate is further strengthening its position by deploying the latest secure financial technology solutions that support its cashless strategy, streamline government transactions, and foster innovation in financial services.

“I extend my sincere appreciation to the Department of Finance for enabling new global partnerships that support the objectives of the Dubai Economic Agenda D33 and reinforce Dubai’s status as a global hub for innovation.”

Abdulrahman Saleh Al Saleh, Director-General of DOF, said: “We take great pride in Dubai Finance’s key role in driving the Dubai Cashless Strategy and shaping a distinctive digital financial future.

“We remain committed to collaborating with our partners across government entities and leading financial service providers to advance the digital payment ecosystem and develop innovative solutions that support the rapidly evolving digital economy.”

Eric Anziani, President of Crypto.com, said: “The Government of Dubai has been a true global visionary with its plans for a cashless society. We are proud to be selected to support Dubai’s Department of Finance as part of this initiative, which will see Crypto.com enable the delivery of the first comprehensive and holistic Government-wide implementation of payment digitisation.

“We are excited to bring our capabilities and innovative thinking to catalyse this progress and we recognise the exceptional vision of Dubai’s leadership in shaping the future of economic growth with ambitious programmes such as these.”

Amna Mohammed Lootah, Director of Digital Payment Systems Regulation, said: “The Dubai Cashless Strategy aims to strengthen the emirate’s position among the world’s leading digital cities, with a goal of conducting more than 90% of financial transactions across both the public and private sectors through cashless methods by 2026.

“The signing of this agreement with a globally renowned cryptocurrency platform marks a ground-breaking initiative, enabling government service users to pay all government fees through digital currencies – an unprecedented step in the global financial landscape.

“We are confident that this milestone will significantly accelerate the advancement of the Dubai Cashless Strategy.”

The Dubai Cashless Strategy is expected to drive economic growth by adding at least AED8bn ($2.2bn) annually to the economy, fuelled by the development of a wide range of innovative financial technology services and the accelerated expansion of Dubai’s fintech sector.

Once the necessary technical arrangements for the agreement’s activation are finalised, individuals and businesses customers of government entities will be able to pay service fees seamlessly through Crypto.com’s digital wallets.

The platform will securely convert these payments into Emirati dirhams and transfer them to Dubai Finance accounts, ensuring a streamlined, secure and innovative payment framework.