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Dubai is preparing to allow residents to pay for government services using cryptocurrency, marking a pioneering move in digital finance for the public sector. The initiative, announced Monday, follows a new memorandum of understanding (MoU) signed between Dubai’s Department of Finance (DOF) and global digital asset platform agreement—formalised during the Dubai FinTech Summit—signals the emirate’s intent to support the Dubai Cashless Strategy by offering secure and inclusive payment options through blockchain-backed currencies. Once live, customers of government entities will be able to settle fees via ’s wallet, with the platform converting the payments into Emirati dirhams before transferring them to DOF would make Dubai one of the first governments globally to implement crypto payments across a broad range of public services—moving beyond isolated pilots seen in other , launch MENA’s first crypto payment service at fuel the groundwork for a digital economyThe announcement comes amid Dubai’s wider ambitions to cement its place as a global financial innovation hub. The city has made significant strides in creating a regulated environment for virtual assets under its Virtual Assets Regulatory Authority (VARA), and this new MoU brings government integration into the mix.“This is more than a payment method,” said Ahmad Ali Meftah, Executive Director of Central Accounts at DOF. “It’s about building a sustainable digital financial model for the future.” The DOF said it is actively working on technical integration to make this functionality available to individual and business users “soon.”The Dubai Cashless Strategy, launched to support the Dubai Economic Agenda D33, aims to ensure over 90% of public and private sector transactions are conducted via non-cash methods by 2026. Officials say this transition could add more than AED 8 billion annually to the local backing and global relevanceSenior officials, including Abdulla Al Basti, Secretary General of The Executive Council of Dubai, and Abdulrahman Al Saleh, Director General of DOF, were present at the signing. Both stressed that the deal reflects Dubai’s “proactive” approach to economic shifts and innovation in digital use of stablecoins—a form of crypto tied to fiat currencies—was highlighted as a key feature of the payment model to ensure security and limit volatility in other countries have explored crypto taxation or held consultations on digital payments, Dubai’s decision to directly incorporate crypto into its fee collection infrastructure is being positioned as a first-of-its-kind rollout with real-world secures Dubai Financial Services Authority licence to offer regulated crypto payments from , which is licensed by VARA, will serve as the technical facilitator for the project. “This is a comprehensive, government-wide implementation, not just a limited trial,” said Mohammed Al Hakim, President of operational, the model could serve as a blueprint for other government systems seeking to integrate regulated crypto solutions while maintaining compliance and user ’s move continues its trend of embracing emerging technologies—while carefully threading the line between innovation and regulatory oversight.
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