Dubai Partners with Crypto.com for Cashless Economy

Dubai has taken a significant step towards embracing digital finance by partnering with global crypto exchange Crypto.com. This collaboration, formalized during the Dubai Fintech Summit on May 12, aligns with the emirate’s broader goal of transitioning to a fully cashless, digital economy. The new service will enable individuals and businesses to pay government service fees using cryptocurrencies via Crypto.com’s digital wallets. These payments will be converted into UAE dirhams and transferred directly to the Dubai Department of Finance’s accounts.

The initiative is part of Dubai’s Cashless Strategy, which aims to make 90% of financial transactions across public and private sectors cashless by 2026. Amna Mohammed Lootah, director of digital payment systems regulation, expressed confidence that this milestone will significantly accelerate the advancement of the Dubai Cashless Strategy. While the specific cryptocurrencies to be accepted have not been confirmed, the use of “stable cryptocurrencies” suggests that stablecoins could play a central role. This follows an April 28 announcement by three major Abu Dhabi institutions of plans to launch a dirham-pegged stablecoin.

Dubai’s cashless strategy, first announced in October 2024, builds on an already strong digital foundation—97% of government payments in 2023 were conducted digitally. The transition to digital payments is estimated to add at least 8 billion dirhams (around $2.1 billion) to the local economy, largely through the growth of fintech services. Ahmad Ali Meftah, executive director of the central accounts sector at the DOF, emphasized that the government continues to work on a regulatory framework that encourages innovation while maintaining high standards for security and efficiency in digital transactions.

The emirate has consistently positioned itself as a crypto-forward jurisdiction. It recently hosted Token2049 in April and launched a pilot project in March to tokenize real estate assets on the blockchain. Dubai joins a growing list of governments exploring the use of crypto for public services, including legislative proposals aimed at allowing state agencies to accept digital currencies. On May 12, HashKey Group, a prominent digital asset financial services firm, received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA). With the license, HashKey is authorized to offer Virtual Asset Exchange Services and Broker-Dealer Services within Dubai and to clients originating from the emirate. The move comes as the UAE continues to position itself as a regional hub for blockchain innovation and crypto finance, with regulatory clarity attracting major global players.