Dubai has taken another step toward embracing digital finance by signing an agreement with global crypto exchange Crypto.com to enable cryptocurrency payments for government services.
The partnership was formalized during the Dubai Fintech Summit on May 12 and aligns with the emirate’s broader push to become a fully cashless, digital economy.
According to the Dubai Department of Finance (DOF), the new service will allow individuals and businesses to pay government service fees using cryptocurrencies via Crypto.com’s digital wallets.
These payments will be converted into UAE dirhams and transferred directly to the DOF’s accounts.
Dubai Aims for 90% Cashless Transactions by 2026 Under New Strategy
The initiative falls under Dubai’s Cashless Strategy, which aims to make 90% of financial transactions across public and private sectors cashless by 2026.
“We are confident that this milestone will significantly accelerate the advancement of the Dubai Cashless Strategy,” said Amna Mohammed Lootah, director of digital payment systems regulation.
While the DOF has not confirmed which cryptocurrencies will be accepted, it noted that users will be able to transact with “stable cryptocurrencies,” suggesting that stablecoins could play a central role.
This follows an April 28 announcement by three major Abu Dhabi institutions, including the Emirate’s sovereign wealth fund, of plans to launch a dirham-pegged stablecoin.
Dubai’s cashless strategy, first announced in October 2024, builds on an already strong digital foundation—97% of government payments in 2023 were conducted digitally.
The DOF estimates the transition to digital payments could add at least 8 billion dirhams (around $2.1 billion) to the local economy, largely through the growth of fintech services.
Ahmad Ali Meftah, executive director of the central accounts sector at DOF, emphasized that the government continues to work on a regulatory framework that encourages innovation while maintaining high standards for security and efficiency in digital transactions.
The emirate has consistently positioned itself as a crypto-forward jurisdiction. It recently hosted Token2049 in April and launched a pilot project in March to tokenize real estate assets on the blockchain.
Dubai joins a growing list of governments exploring the use of crypto for public services, including legislative proposals in New York aimed at allowing state agencies to accept digital currencies.
HashKey Secures VASP License from Dubai’s VARA
On May 12, HashKey Group, a prominent digital asset financial services firm in the Asia-Pacific region, received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA).
With the license, HashKey is authorized to offer Virtual Asset Exchange Services and Broker-Dealer Services within Dubai and to clients originating from the emirate.
The move comes as the UAE continues to position itself as a regional hub for blockchain innovation and crypto finance, with regulatory clarity attracting major global players.
As reported, a state-backed investment firm in Abu Dhabi is set to make a $2 billion investment into crypto exchange Binance using USD1, a stablecoin developed by World Liberty Financial — a crypto venture closely tied to the Trump family.
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