The Dubai Department of Finance (DoF) has successfully tested the settlement of cryptocurrency payments into fiat AED currency or AED stablecoin as government service fees.
The test was conducted in collaboration with Dubai Land Department (DLD) through the Dubai Pay platform, managed by Digital Dubai Authority and Emirates NBD Bank. The aim was to verify the operational and technical efficiency of the system and ensure the highest level of security when it is officially adopted in the future.
Crypto.com, registered in the UAE as Foris Dax Middle East, recently received In-Principle Approval (IPA) for a Stored Value Facility (SVF) license from the UAE Central Bank (CBUAE), which will enable it to offer government-fee digital payment services in UAE dirhams or dirham-pegged stablecoins.
The test comes in preparation for a final license that will allow Foris Dax, trading as Crypto.com, to offer digital payment services for Dubai government fees in UAE dirhams or AED stablecoins.
DLD tested the success of payments for publication of property maps. DLD previously said it would offer crypto payment services by the end of the year.
Accordingly, Amina Loota, Director of Digital Payment Systems Regulation at the Dubai Ministry of Finance, confirmed that the first-of-its-kind government transaction to settle digital assets in dirhams was successfully executed within a secure and closed environment. The transaction amount was settled in UAE dirhams through a fully integrated system, ensuring full regulatory compliance.
Dubai government experiment is part of City-as-a-Service concept
Abdulrahman Al Saleh, Director-General of Dubai’s Ministry of Finance, affirmed that the successful experiment is a positive step towards the future of digital transactions in Dubai, adding that the emirate offers advanced financial technology with the highest standards of security and compliance.
He further added: “At Dubai Finance, in line with the vision of our wise leadership, we are committed to exploring innovative financial solutions that strengthen the government payments ecosystem and accelerate the transition to a fully digital economy.”
Hamad Al Mansouri, Director General of Digital Dubai Authority, said this is a major step forward in realizing the City as a Service concept, where the latest financial technologies are seamlessly integrated with government service systems in one secure, frictionless experience.
According to Al Mansouri, the ability to use digital assets to pay government fees reflects the city’s ability to anticipate the future and embrace technology that redefines the relationship between government and customers.
Omar Boushahab, Director-General of Dubai Land Department, emphasized that the test payment of government transactions using an innovative method with digital asset settlement in dirhams reflects the government’s commitment to adopt advanced digital technologies ahead of full-scale implementation.
Mohamed Al Hakim, President and General Manager, UAE, Foris Dax Middle East, explained: “This milestone has been achieved within the framework of the UAE Central Bank’s preliminary approval and marks a preliminary step towards building a secure and sustainable digital payments ecosystem that serves both the government and society.”