The Dubai Department of Finance (DOF) executed a memorandum of understanding (MoU) with Crypto.com in order to allow institutions and members of the public to settle payments for government fee services using cryptocurrency.
Dubai was the first global city to embrace the digital currency and include it as part of the government’s payments system. After completing the necessary technical arrangements, institutions and the public will use Crypto.com digital wallets to remit payments, which will then settle in Emirati dirhams.
New Payment Method
The initiative comes under the Dubai Cashless Strategy to achieve a target of cashlessness at 90% by 2026. DOF puts estimated payment in the form of cryptocurrencies to inject at least 8 billion dirhams ($2.2 billion) annually into the economy of Dubai. This announcement, made at the Dubai Fintech Summit, highlights the city’s commitment to becoming a global innovation hub.
Driving the D33 Economic Agenda
Digital money payment solution is in sync with the Dubai D33 Economic Agenda for positioning Dubai as a world-class business destination. Dubai will attract foreign businesses and investors by offering a hassle-free payment method.
Other Partnerships and Expansions
Crypto.com, licensed by VARA in Dubai, partners with the Emirates General Petroleum Corporation (Emarat). The partnership has come together in a deal that will have ten of the Emarat fuel stations receive payments in the form of cryptocurrency, with expansion potential within the network. Not only is it opening up channels for payments, but it is also encouraging the use of digital money in everyday transactions.
As anticipation grows, cryptocurrency payment will change the equation for residents’, business’, and government services. Generally, Dubai is pioneering countries on financial innovation as it embraces virtual money, whose spillover will make other large cities take this path.
