Dubai is moving closer to becoming one of the first governments in the world to accept cryptocurrency for official payments.
In a controlled pilot, the city successfully processed a public service fee using digital assets that were automatically settled in UAE dirhams.
The experiment was coordinated by the Department of Finance, Dubai Land Department, Digital Dubai Authority, and Emirates NBD Bank, marking a major step in the emirate’s goal of merging blockchain innovation with its public finance system.
During the test, a routine property service payment was made through Dubai Pay, the city’s official transaction platform. The system converted the crypto value directly into dirhams through a secure integration, proving that such operations can be executed safely within local financial regulations.
At the center of this initiative is Foris Dax Middle East, the UAE arm of Crypto.com, which recently obtained in-principle approval from the Central Bank of the UAE for a license to manage stored-value facilities. Once the approval becomes permanent, the company will be authorized to settle government payments in AED or dirham-pegged stablecoins across Dubai.
Officials described the pilot as a milestone in building Dubai’s “City-as-a-Service” model – a framework designed to connect public services, digital assets, and fintech infrastructure into a single smart ecosystem.
Abdulrahman Al Saleh, Director General of the Department of Finance, said the pilot “demonstrates Dubai’s readiness to expand digital payments under the highest standards of compliance and security.” Hamad Al Mansoori, head of Digital Dubai, added that the project shows how emerging technologies can strengthen trust between citizens and government through faster, safer transactions.
Omar Bushahab from the Dubai Land Department called the test a precursor to “broader implementation,” confirming that crypto payment options for property-related services could be available to the public by the end of the year.
Meanwhile, Foris Dax General Manager Mohammed Al Hakim said the trial aligns with the UAE’s efforts to “create a sustainable digital payment ecosystem that empowers both institutions and individuals.”
Dubai’s long-term vision is clear: to make digital assets part of everyday life – not only for private businesses, but for the government itself.
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Source: https://coindoo.com/dubai-executes-first-government-crypto-payment-in-dirhams/