Dubai Pilots Crypto Payments for Govt Fees, Aims 90% Cashless by 2026

The Department of Finance (DoF) of Dubai has already managed to finalize a pilot, which allows paying with the digital assets in UAE...

Quick overview

  • Dubai's Department of Finance has launched a pilot program allowing payments with digital assets in UAE dirhams for immediate government services.
  • The pilot transaction involved issuing a property map and was conducted under secure conditions with the help of a licensed virtual asset service provider.
  • This initiative aligns with Dubai's Cashless Strategy, aiming to digitize 90% of financial transactions by 2026.
  • Industry leaders have praised the project as a significant step towards establishing secure digital payment ecosystems and enhancing Dubai's status as a digital finance leader.

The Department of Finance (DoF) of Dubai has already managed to finalize a pilot, which allows paying with the digital assets in UAE dirhams to obtain immediate government services. The project is being implemented through the Dubai Pay platform in collaboration with Dubai Land Department (DLD) and managed by the Digital Dubai Authority, showing that the emirate takes financial innovation seriously.

A pilot transaction took place as a property map was issued and was processed with the help of Dax Middle East that was a licensed virtual asset service provider. The test had been conducted under controlled conditions in a secure environment that officials confirmed had been done, and is paving the way to broader implementation of such tests in government services.

Leadership Digital Economy Vision

LDoF director general Abdulrahman Al Saleh, referred to the pilot as a future-oriented proactive measure, stating that Dubai strived to unite with highly advanced financial technologies and financial security with robust regulation compliance.

Director general of Digital Dubai Authority, Hamad Al Mansoori told him that the project is a milestone towards the digital transformation of the city. This project paves the way towards the vision statement of the City as a Service, in which the financial and governmental systems are unified to function together, he pointed out.

Key takeaways:

  • Pilot payment to be paid in full UAE dirhams.
  • Carried out at high control and security levels.
  • Indeed, supports the wider Dubai digital economy strategy.
  • Milestone on Cashless Strategy and Industry Adoption.

The pilot is in line with Cashless Strategy of Dubai, which aims at digitizing 90 percent of financial transactions by 2026. Amina Lootah, who is the director of Digital Payment Systems Regulation at DoF, affirmed regulatory compliance and effective settlement of the transaction of digital asset.

The move was applauded by industry leaders:

Eric Anziani, Crypto.com US: Securely Buy, Sell and Trade Bitcoin, Ethereum and 400+ Crypto referred to Dubai as a global visionary in terms of marketing cashless systems.  Mohammed Al Hakim, Foris Dax Middle East underscored the initiative as the basis of secure digital payment ecosystems.

The pilot project success of Dubai reflects its status as a digital finance leader in the world, demonstrating its willingness to implement cryptocurrency and blockchain technology into the standard government processes. The progressive nature of the emirate might become an example that other cities studying safe and cashless societies can use.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

HFM

Doo Prime

XM

Best Forex Brokers