Source: Cointelegraph
Original: “Dubai Government Partners with Crypto.com to Launch Cryptocurrency Payment Channel for Public Services”
The Dubai government has signed a strategic agreement with cryptocurrency exchange Crypto.com to officially launch cryptocurrency payment functionality for government services.
The agreement was finalized on May 12 during the Dubai Fintech Summit and is an important part of Dubai's cashless strategy, aimed at accelerating the city's transformation into a "fully digital, cashless society" by "introducing a new digital payment channel on official platforms," according to an official statement from the Dubai Department of Finance (DOF) on May 12.
Once the service is officially launched, individual and business users of government agencies will be able to use cryptocurrencies to pay for various service fees through the Crypto.com digital wallet. The Department of Finance stated that these cryptocurrency payments will be automatically converted to dirhams and directly deposited into the Department's account.
Amna Mohammed Lootah, Director of the Digital Payment Systems Regulatory Department, stated that Dubai plans to achieve 90% of financial transactions in the public and private sectors to be completed through cashless means by 2026.
She emphasized, "We firmly believe that this milestone cooperation will significantly accelerate the comprehensive implementation of Dubai's cashless strategy."
The Department of Finance did not specify which cryptocurrencies will be accepted but did mention that payments could be made using "stable cryptocurrencies," suggesting that stablecoins are likely to be permitted.
Notably, on April 28, three major financial institutions in Abu Dhabi, including the Abu Dhabi sovereign wealth fund, jointly announced plans to launch a new stablecoin pegged to the dirham.
The city's cashless strategy was initially announced in October 2024. At that time, the Department of Finance reported that 97% of government payments had already been digitized by 2023.
According to the Department of Finance's forecasts, this strategy is expected to add at least 8 billion dirhams (approximately $2.1 billion) in value to the economy, driven by the rapid development of fintech services and the accelerated expansion of Dubai's fintech sector.
Ahmad Ali Meftah, Executive Director of the Central Accounts Department of the Department of Finance, stated in an official statement that the government is actively developing a regulatory framework to "ensure that digital financial transactions meet the highest standards of security and efficiency while promoting innovation."
Dubai is widely regarded as a global crypto-friendly city. The emirate successfully hosted the Token2049 Dubai event from April 30 to May 1 this year.
Additionally, on March 19, the Dubai government launched a pilot project to convert real estate assets into digital tokens on the blockchain.
Other governments are also actively exploring the application of cryptocurrency payments. In April of this year, a New York state legislator proposed a legislative bill to allow state government agencies to accept cryptocurrency payments.
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