Dubai Partners with Crypto.com to Power Government Crypto Payments

Residents and businesses can now pay Dubai government fees with crypto via Crypto.com, advancing the emirate’s digital economy agenda.

In a landmark move further solidifying its status as a global fintech leader, Dubai has partnered with Crypto.com to enable cryptocurrency payments for government services. The initiative, announced during the Dubai Fintech Summit on May 12, is a strategic leap in the emirate’s broader vision to become a cashless digital economy.

Through this collaboration, individuals and businesses will be able to settle government-related payments using digital assets via Crypto.com’s platform. The payments will be instantly converted into UAE dirhams and credited directly to the Dubai Department of Finance (DOF), ensuring a seamless and compliant financial flow.

A Strategic Leap in Dubai’s Cashless Vision

This new offering is a key milestone in Dubai’s Cashless Strategy, which targets 90% cashless transactions across public and private sectors by 2026. Originally launched in October 2024, the strategy builds on the emirate’s already mature digital infrastructure – 97% of government transactions in 2023 were conducted digitally.

Amna Mohammed Lootah, director of digital payment systems regulation, emphasized the significance of the development:

“We are confident that this milestone will significantly accelerate the advancement of the Dubai Cashless Strategy.”

While the Department of Finance has not disclosed the full list of supported cryptocurrencies, the announcement noted the use of “stable cryptocurrencies.” This indicates stablecoins may play a central role, offering price stability and regulatory alignment.

This approach aligns with recent regional developments. On April 28, three major financial institutions in Abu Dhabi – including the emirate’s sovereign wealth fund – revealed plans to launch a dirham-pegged stablecoin, further supporting the UAE’s crypto-forward trajectory.

Strengthening the Fintech Ecosystem

The integration of crypto payments into government services is expected to fuel growth across Dubai’s fintech sector. The DOF estimates that the broader shift toward digital payments could inject over 8 billion dirhams (approx. $2.1 billion) into the local economy, driven primarily by expanded digital financial services and increased economic efficiency.

Ahmad Ali Meftah, executive director of the central accounts sector at the DOF, noted that the government continues to refine its regulatory framework, aiming to strike a balance between innovation, security, and operational efficiency.

Dubai’s progressive approach is not confined to payments. In March, the emirate launched a pilot project to tokenize real estate assets on the blockchain, signaling a broader embrace of distributed ledger technologies across sectors.

In April, the city hosted Token2049, one of the leading global crypto conferences, further reinforcing its ambition to become the blockchain capital of the Middle East.

HashKey Expands Presence with VASP License

In parallel with the Crypto.com partnership, another major development in Dubai’s digital asset ecosystem occurred on May 12: HashKey Group, a leading Asia-Pacific digital asset financial firm, received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA).

This license enables HashKey to provide Virtual Asset Exchange Services and Broker-Dealer Services within Dubai and to serve clients originating from the emirate. The entry of such a high-profile player underscores Dubai’s growing appeal to global crypto enterprises.

Dubai’s comprehensive virtual asset regulations and proactive engagement with the blockchain industry are key factors drawing international firms to the region. With VARA at the helm, the city has cultivated a regulatory environment that encourages innovation without compromising consumer protection or financial stability.

Regional Momentum Behind Stablecoins and Crypto Regulation

The UAE’s aggressive digital finance strategy has been mirrored by significant private-sector activity. A recent report revealed that a state-backed investment firm in Abu Dhabi is preparing to invest $2 billion into Binance, utilizing USD1, a stablecoin developed by World Liberty Financial, a venture with ties to the Trump family.

While this deal remains under development, it reflects growing institutional interest in stablecoins as both a store of value and a medium of exchange – especially within the Middle East’s evolving regulatory frameworks.

Globally, Dubai’s move places it among a small but growing group of governments testing or implementing crypto-based payment systems for public services. For instance, U.S. lawmakers in New York have proposed legislation to allow state agencies to accept cryptocurrencies for various fees and obligations.

Conclusion: A Model for Future Governments?

Dubai’s integration of crypto into public financial infrastructure marks a milestone in government-level blockchain adoption. By leveraging private sector partnerships and embracing stablecoin technology, the emirate is laying the groundwork for a digitally-native economy with global reach.

As other nations observe Dubai’s experiment, the question isn’t whether crypto payments for public services are feasible – it’s whether they’re inevitable. With its fast-moving policies and commitment to fintech innovation, Dubai continues to set the pace for government transformation in the digital age.