Dubai Government Introduces Acceptance of Cryptocurrency for Service Payments

Dubai has made moves toward a cashless future by partnering with a cryptocurrency exchange to enable digital payments for government services. This agreement with Crypto.com is intended to enhance the emirate’s digital transaction capabilities.

The finalized agreement will enable users, both individuals and businesses, to utilize Crypto.com’s digital wallets for fee payments. Licensed by the emirate’s Virtual Assets Regulatory Authority, the platform will facilitate the conversion of cryptocurrency transactions into local currency, the dirham, as outlined in their announcement.

By introducing this digital payments channel, the government aims to leverage financial technology to enhance accessibility on its digital platforms. It is projected that this initiative could contribute an addition of approximately 8 billion dirhams ($2.2 billion) to the local economy annually.

Dubai has been cultivating its reputation in the cryptocurrency space over recent years, positioning itself as a central hub for crypto activities in the Middle East. In March 2022, the establishment of the emirate’s Virtual Assets Regulatory Authority marked a significant step, promoting regulatory oversight for various exchanges, including Binance and OKX. Additionally, Dubai is actively pursuing initiatives in the metaverse, with goals to attract 1,000 blockchain and metaverse companies by 2030.