Dubai Makes History with First Government Crypto Payment in Dirhams

16.10.2025 22:25

In a landmark pilot test, Dubai has successfully executed its first government crypto payment, processing a public service fee using digital assets that were automatically settled in UAE dirhams. The experiment, coordinated by the Department of Finance, Dubai Land Department, Digital Dubai Authority, and Emirates NBD Bank, marks a significant step in integrating blockchain innovation with the emirate's public finance system.

During the trial, a routine property service payment—specifically for issuing a property map—was made through the Dubai Pay platform, the city's official transaction system. The payment involved converting the crypto value directly into dirhams via a secure integration, demonstrating that such operations can be conducted safely within local financial regulations. Foris Dax Middle East, the UAE arm of Crypto.com, played a central role in this initiative after receiving in-principle approval from the Central Bank of the UAE for a license to manage stored-value facilities. Once fully approved, the company will be authorized to settle government payments in AED or dirham-pegged stablecoins across Dubai.

Officials hailed the pilot as a milestone in Dubai's "City-as-a-Service" model, which aims to connect public services, digital assets, and fintech infrastructure into a unified smart ecosystem. Abdulrahman Al Saleh, Director General of the Department of Finance, stated that the test "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 emerging technologies like this enhance trust between citizens and government through faster, safer transactions.

Omar Bushahab from the Dubai Land Department confirmed that the test is a precursor to broader implementation, with crypto payment options for property-related services potentially available to the public by the end of the year. Mohammed Al Hakim, General Manager of Foris Dax, emphasized that the trial aligns with UAE efforts to "create a sustainable digital payment ecosystem that empowers both institutions and individuals." The long-term vision is to make digital assets part of everyday life, extending beyond private businesses to government operations.