The Dubai Department of Finance (DOF) has announced the acceptance of digital assets as payment for government services.
The agreement was signed at the Dubai FinTech Summit as part of the UAE's strategy to transition to cashless payments: by 2026, 90% of transactions in the country should be conducted in digital format.
Users will be able to pay for services through a cryptocurrency wallet. The platform will automatically convert digital assets into dirhams, which will be credited to DOF accounts. Authorities expect the initiative to add up to 8 billion dirhams ($2.1 billion) to the local economy annually and strengthen Dubai's status as a fintech hub.
"This is the first project of its kind in the world that combines digital assets and the public sector," said Mohammed Al Hakim, head of Crypto.com in the UAE.
In March, UAE National Security Advisor Sheikh Tahnoon bin Zayed Al Nahyan and Donald Trump's special advisor on AI and cryptocurrencies David Sachs discussed the development of digital assets and artificial intelligence.