- Dubai’s government partners with Crypto.com to enable cryptocurrency payments for services.
- By 2026, Dubai targets 90% cashless transactions to enhance financial efficiency.
- Stable cryptocurrencies could be integrated into Dubai’s government payment system.
Dubai’s government has partnered with Crypto.com to adopt cryptocurrency payments for government services. The deal, made at the Dubai Fintech Summit on May 12, is another step toward making the city cashless.
Under this agreement, individuals can pay for government services using cryptocurrency through the digital wallet of Crypto.com. Payments will be converted into dirhams and credited to the Dubai Department of Finance (DOF) accounts. The new system will make payments easier and smoother for individuals and businesses.
The first step is to choose the government service through which you have to make a payment. This may include such things as utility bills, business registration fees, and licensing costs. After choosing the service, the platform will give you an opportunity to pay with cryptocurrency.
Once the user selects a cryptocurrency, the system will provide a unique address to which the payment will be sent. After the payment has been confirmed, it will be processed and converted to dirhams, which will then be forwarded to the government’s account. The entire process is designed to be quick and secure, leveraging blockchain technology to ensure transparency and minimize processing delays.
Boosting Dubai’s Financial Services
The initiative forms part of Dubai’s overall target of achieving 90% cashless payments by the year 2026. According to a director of the digital payment systems regulation, this step will benefit both the public and private sectors.
The DOF did not reveal which cryptocurrencies will be accepted initially. However, it was proposed that stable cryptocurrencies could be incorporated into the list of payment options. This is consistent with increasing appetite for stable digital money in the UAE, such as Abu Dhabi’s institutions’ plans to launch a new digital dirham-backed stablecoin.
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Dubai’s cashless initiative was started in October 2024. As the fintech sector expands with digital transformation, the city is likely to generate 8 billion dirhams ($2.1 billion) in its economy.
Ahmad Ali Meftah, the executive director of the central accounts sector at DOF, said the government is in the process of establishing a regulatory framework. This will guarantee secure and efficient digital transactions and ensure financial sector innovations.
Other world capitals, such as New York, are discussing utilizing similar crypto payment methods. Such moves indicate the growing acceptance of cryptocurrency as a recognized and efficient mode of payment worldwide.
Dubai is known for being a crypto-friendly city. The government has also started a pilot program with the aim of tokenizing real estate assets on the blockchain, thus accelerating crypto and blockchain adoption.
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