On Tuesday, Dubai’s Department of Finance announced a partnership with the Singapore-based cryptocurrency platform Crypto.com. This collaboration, formalized through a memorandum of understanding signed during the Dubai FinTech Summit, will to pay government service fees using cryptocurrencies.
Dubai’s Partnership With Crypto.com
According to recent reports, the agreement was signed on Monday by Mohammed Al Hakim, president of Crypto.com United Arab Emirates (UAE), alongside Dubai government officials.
Once the “technical arrangements” are complete, users will reportedly be able to make payments through their digital wallets on the Crypto.com platform.
The system is designed to securely convert these cryptocurrency transactions into Emirati dirhams, seamlessly transferring the funds to accounts held by Dubai Finance. This aims to create a streamlined and secure payment framework for government services.
A spokesperson for Crypto.com told CNBC news that this initiative will enable residents of Dubai to pay for various utility services, including parking, using large-market-cap cryptocurrencies.
Dubai Aims For 90% Cashless Transactions By 2026
This move aligns with Dubai’s broader ambition to become a leading digital city, as outlined in its “Dubai Cashless Strategy.” This strategy aims to achieve 90% cashless transactions across both public and private sectors by 2026.
Al Hakim described the initiative as a “truly global first program,” highlighting its innovative nature in the realm of cryptocurrency integration into government services.
Crypto.com, which secured a license for its Dubai operations earlier this year, has been actively working to expand its presence in the region. Last month, Dubai’s virtual asset regulatory body issued a limited license to Crypto.com to offer derivatives, further solidifying its role in the local crypto landscape.
Notably, Dubai has been strategically positioning itself as a global technology hub, actively embracing the cryptocurrency industry as part of this vision.
The partnership with Crypto.com marks another milestone in the city’s journey toward digital transformation, reflecting its commitment to leveraging technology for enhanced public service delivery.
Amid positive regulatory developments in the UAE and the United States—the latter spurred by President Donald Trump’s second term in office—the total crypto market cap valuation has once again surged beyond the $3 trillion mark. This was driven by an easing of the so-called “tariff war,” which had significantly affected crypto prices at the end of the first quarter of the year.
Consequently, the market’s leading cryptocurrencies, led by Bitcoin (BTC), have experienced a significant uptrend. BTC is currently trading at approximately $103,000, just 6% below its all-time high of $109,000, following a 25% correction that saw the token’s price plummet to as low as $74,000 in April.
Featured image from DALL-E, chart from TradingView.com
