Dubai has embarked on a significant initiative in digital finance, forging a partnership with prominent cryptocurrency exchange Crypto.com to facilitate the use of cryptocurrency for government service payments.
This collaboration was officially announced during the Dubai Fintech Summit on May 12, marking a key development in the emirate’s mission to transition towards a fully cashless and digitally oriented economy.
The Dubai Department of Finance (DOF) disclosed that this service will enable individuals and businesses to pay fees for government services through Crypto.com’s digital wallets, with these transactions converted into UAE dirhams and deposited into DOF accounts.
Dubai Targets 90% Cashless Transactions by 2026
This initiative is part of Dubai’s overarching Cashless Strategy, aimed at achieving 90% cashless transactions throughout public and private sectors by the year 2026.
“This milestone is expected to significantly expedite the progress of the Dubai Cashless Strategy,” stated Amna Mohammed Lootah, director of digital payment systems regulation.
While the DOF has yet to specify which cryptocurrencies will be accepted, it has indicated that transactions will primarily involve “stable cryptocurrencies,” hinting at the likelihood of stablecoins playing a crucial role.
This announcement follows an April 28 declaration from three major Abu Dhabi entities, including the emirate’s sovereign wealth fund, regarding their plans to introduce a dirham-pegged stablecoin.
Initially unveiled in October 2024, Dubai’s cashless strategy is built on a robust digital foundation, with data revealing that approximately 97% of government payments were made digitally in 2023.
Dubai Finance (DOF) has signed a Memorandum of Understanding (MoU) with https://t.co/HZnta4pnXb, a globally recognised cryptocurrency trading platform, to enable the payment of government service fees using cryptocurrencies—an initiative that marks a significant step in advancing… pic.twitter.com/iOh7kOz50p
— Dubai Media Office (@DXBMediaOffice) May 12, 2025
The DOF estimates that shifting to digital payments could inject at least 8 billion dirhams (approximately $2.1 billion) into the local economy, primarily through the expansion of fintech services.
Ahmad Ali Meftah, executive director of the central accounts sector at DOF, underscored the government’s commitment to developing a regulatory framework that promotes innovation while ensuring high security and efficiency standards for digital transactions.
Dubai has consistently sought to establish itself as a leading hub for crypto, recently hosting a major fintech event, Token2049, in April, and launching a pilot project in March to tokenize real estate assets via blockchain technology.
Moreover, Dubai joins an expanding list of governments that are exploring the integration of cryptocurrencies into public services, with legislative initiatives in places like New York aiming to permit state agencies to accept digital currencies.
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This development aligns with the UAE’s strategy to establish itself as a regional leader in blockchain innovation and cryptocurrency finance, benefiting from regulatory clarity that attracts major international firms.
In related news, it was reported that a state-backed investment company in Abu Dhabi plans to invest $2 billion into cryptocurrency exchange Binance, utilizing USD1, a stablecoin created by World Liberty Financial, affiliated with the Trump family.
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