Nikolas Sargeant
Dubai went public at the Fintech Summit on May 12th with the city's plan to team up with Crypto.com, enabling residents to pay for government services with cryptocurrency. The deal lets people and businesses settle government fees using crypto through Crypto.com wallets, with the platform handling conversion to dirhams before transferring funds to Dubai's Department of Finance (DOF).
The collaboration represents a crucial step in Dubai's ambitious Cashless Strategy, which targets 90% cashless transactions across public and private sectors by 2026. "We are confident that this milestone will significantly accelerate the advancement of the Dubai Cashless Strategy," stated Amna Mohammed Lootah, director of digital payment systems regulation.
While specific cryptocurrencies haven't been confirmed, the DOF indicated users will be able to transact with "stable cryptocurrencies," suggesting stablecoins may be prioritized. This development follows the April 28 announcement by three major Abu Dhabi institutions, including the emirate's sovereign wealth fund, regarding plans to launch a dirham-pegged stablecoin.
Regional Crypto Ecosystem Expands With HashKey's Regulatory Approval
Dubai's crypto landscape gained another significant player as HashKey Group secured a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA) on May 12. This authorization enables the Asia-Pacific digital asset financial services firm to offer Virtual Asset Exchange and Broker-Dealer Services within Dubai and to clients from the emirate.
The DOF estimates the transition to digital payments could inject at least 8 billion dirhams (approximately $2.1 billion) into the local economy through fintech service expansion. Ahmad Ali Meftah, executive director of the central accounts sector at DOF, emphasized the government's commitment to developing regulatory frameworks that foster innovation while maintaining high security standards for digital transactions.
Dubai's crypto-forward approach continues to attract global attention, from hosting Token2049 in April to launching a real estate tokenization pilot in March. Meanwhile, Abu Dhabi's state-backed investment firms are reportedly preparing a $2 billion investment into Binance using USD1, a stablecoin developed by World Liberty Financial, a venture with connections to the Trump family.
