Dubai’s Department of Finance (DoF) has made significant strides in integrating cryptocurrency with governmental payment processes, successfully testing settlements of crypto payments to fiat AED or AED stablecoins. This initiative was executed in collaboration with the Dubai Land Department (DLD) and was facilitated through the Dubai Pay platform, overseen by the Digital Dubai Authority and Emirates NBD Bank. The primary goal of the test was to validate both the operational and technical efficiency of the systems, ensuring that security measures are in place for future implementations.
Crypto.com, operating in the UAE under the name Foris Dax Middle East, recently received In-Principle Approval from the Central Bank of the UAE (CBUAE) for a Stored Value Facilities (SVF) license. This approval is a crucial step that will allow the platform to offer digital payment services for government fees in UAE dirhams or dirham-pegged stablecoins.
The DLD successfully executed a payment for the issuance of a property map within this testing initiative. The department had previously indicated that it plans to roll out crypto payment services by the end of the year.
Amina Lootah, Director of Digital Payment Systems Regulation at the DoF, confirmed that the transaction, which settled digital assets in dirhams, was successfully conducted in a secure, closed environment. The transaction’s value was fully settled in UAE dirhams using integrated systems which ensured complete regulatory compliance.
This pilot program aligns with Dubai’s City-as-a-Service concept, aiming for a future where advanced fintech seamlessly integrates with government service platforms. His Excellency Abdulrahman Al Saleh, the Director General of the DoF, described the successful pilot as a proactive step toward the future of digital transactions in Dubai, emphasizing the Emirate’s commitment to providing advanced financial technology with stringent security and compliance standards.
H.E. Hamad Al Mansoori, Director General of the Digital Dubai Authority, characterized the initiative as a critical advancement in the realization of the City as a Service concept, illustrating how modern financial technologies can integrate seamlessly into government services to create a secure and efficient user experience. Al Mansoori stated that enabling payment of government fees through digital assets exemplifies Dubai’s forward-thinking approach while enhancing the relationship between government entities and citizens.
Omar Bushahab, Director General of the DLD, highlighted that the test represents the government’s dedication to utilizing innovative digital technologies ahead of broader deployment.
Mohammed Al Hakim, President and General Manager of Foris Dax Middle East, commented on the milestone, noting that it comes as part of the preliminary approval from the UAE Central Bank. He emphasized that this step marks the beginning of building a secure and sustainable digital payment framework that serves the government and the community effectively.
