Dubai’s Initiative to Accept Cryptocurrency for Government Fees

Dubai has taken a progressive step by agreeing to accept cryptocurrency payments for government services in a deal with Crypto.com. This agreement is a significant advancement towards realizing a cashless society in the emirate.

Once all technical aspects are finalized, residents and businesses will be able to use their digital wallets from Crypto.com to pay fees. Crypto.com is regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), ensuring that transactions will be converted into dirhams for payment through the platform, as detailed in a recent press release.

This initiative aims to enhance Dubai’s financial technology landscape and is projected to contribute at least 8 billion dirhams ($2.2 billion) annually to the local economy.

Dubai has been striving to establish itself as a leader in the cryptocurrency space and aims to be recognized as a Middle East crypto hub. In March 2022, it launched VARA, which claims to be the world’s first independent crypto regulator, and has granted licenses to various exchanges, including prominent names like Binance and OKX. Furthermore, Dubai has also introduced a metaverse strategy, targeting the attraction of 1,000 blockchain and metaverse companies by 2030.