Dubai’s Ministry of Finance Partners with Crypto.com to Facilitate Cryptocurrency Payments
The Dubai Ministry of Finance (DOF) has signed a memorandum of understanding with the cryptocurrency exchange Crypto.com to promote the use of cryptocurrencies for government service fees.
According to a press release issued by Crypto.com, this collaboration is part of the “Dubai Cashless Strategy,” aimed at enabling the Dubai government to leverage financial technology to introduce new digital payment channels on official digital platforms. The initiative seeks to “facilitate secure, efficient, and inclusive financial transactions through cryptocurrencies, paving the way for Dubai’s transition to a fully digital and cashless society.”
Once the service is launched, individual and corporate clients of government agencies will be able to pay public service fees using cryptocurrencies through Crypto.com’s digital wallet. The cryptocurrencies used for payments will be automatically converted to the UAE Dirham (AED) and deposited into the Ministry of Finance’s account.
The press release did not specify which cryptocurrencies would be accepted, only indicating that “stable cryptocurrencies” could be used for payments, possibly implying that stablecoins will be accepted.
Amna Mohammed Lootah, head of the digital payment systems regulation at the Dubai Ministry of Finance, stated that the signing of this agreement is a groundbreaking initiative. “We believe this milestone will significantly advance the development of Dubai’s cashless strategy,” she remarked. She noted that the Dubai government aims to conduct 90% of financial transactions in the public and private sectors in a cashless manner by 2026.
Dubai is regarded as a cryptocurrency-friendly city. In addition to Singapore, the annual cryptocurrency event “TOKEN2049” is being held in Dubai this year. In March, the Dubai Land Department (DLD) announced the launch of a pilot project for real estate tokenization, aiming to become the first registration authority in the Middle East to “process real estate certificates using blockchain technology.”
