The Dubai Department of Finance (DOF) and Crypto.com have signed a memorandum of understanding that will allow local residents and contractors to pay for government services, including utility bills, using crypto assets. This significant step occurred at the Dubai FinTech Summit held at the Dubai International Financial Centre.
This is reported by Finway
According to the agreement, after the implementation of all technical aspects, individuals and contractors with contracts with government agencies will be able to use wallets on the exchange to pay for services and fees.
“The platform will securely convert these payments into UAE dirhams and transfer them to Dubai Finance accounts, providing an optimized, secure, and innovative payment structure,” stated Crypto.com.
As noted by a representative of the exchange in a comment to CNBC, the innovation covers the full range of government services, meaning that Dubai residents will be able to pay for services such as parking or utility bills using crypto assets.
This partnership is part of a broader strategy for Dubai’s transition to a fully cashless digital society. It is noted that “stable crypto assets” will be used for such payments, although specific names of cryptocurrencies are not disclosed.
According to the “Dubai Cashless Payments Strategy,” it is planned to achieve 90% cashless transactions in both the public and private sectors by 2026. The new program is expected to generate approximately $2.1 billion annually. The head of the local exchange branch, Mohammed Al Hakim, emphasized that this is the first initiative of its kind in the world.
Additionally, this is not Crypto.com’s first initiative in the region. Previously, the exchange entered into a partnership agreement with the state oil company Emarat to launch crypto payments at a network of gas stations.