Dubai Authorities Complete First Crypto Payment Trial for Government Services

In a milestone event towards financial digitalisation, the Dubai Department of Finance (DOF) announced the successful completion of an initial technical implementation allowing government service fees to be paid using digital assets, with instant settlement in UAE dirhams. The pilot transaction was conducted in partnership with the Dubai Land Department (DLD).

In detail, the partners executed the transaction on the DubaiPay platform, managed by the Digital Dubai Authority (DDA), and a digital asset platform licensed by the Central Bank of the UAE (CBUAE). The transaction, which involved the ‘Issuing a Property Map’ service, marks the first test of its kind ahead of a broader rollout.

Dubai Tests Crypto-to-AED Government Payments

Dubai authorities DOF and DLD successfully completed a pioneering pilot that enabled the Dubai crypto payment test, which involved the settlement of cryptocurrency payments in UAE dirhams for government services. The secure, closed-environment trial was conducted in partnership with Emirates NBD on DubaiPay, ensuring full compliance with UAE financial regulations.

The pilot involved converting digital assets into AED and AED-backed stablecoins to pay government service fees. Supported technically by the Digital Dubai Authority (DDA), the test aimed to evaluate the security, efficiency, and regulatory soundness of integrating digital asset payments within Dubai’s official financial systems.

Abdulrahman Saleh Al Saleh, Director-General of DOF, says, “This milestone marks a proactive step toward the future of Dubai digital asset payments. It comes as part of the emirate’s ongoing efforts to adopt advanced financial technologies in line with the highest standards of security and regulatory compliance.

He also sheds light on the DOF’s commitment to exploring innovative financial solutions that advance the government’s payment ecosystem and accelerate the transition toward a fully integrated digital economy, one that reflects the aspirations of the department’s wise leadership and strengthens Dubai’s position as a global hub for financial innovation.

Dubai’s Unique City-as-a-Service Prospect

Meanwhile, Hamad Obaid Al Mansoori, Director-General of DDA, says, that the initial implementation of paying government service fees using digital assets represents a new milestone in Dubai’s journey towards comprehensive digitalisation. Thus, this move marks a monumental step forward in establishing the ‘City-as-a-Service’ concept.

What this would mean is that Dubai will offer a unique experience where modern financial technologies are integrated with the government services ecosystem in a single, seamless, and secure experience. This transformation would enable individuals and businesses to pay government fees using digital assets, embodying Dubai’s spirit of innovation.

The Director-General of DDA expects the initiative to reflect the city’s ability to anticipate the future and embrace technologies that redefine the relationship between government and customers. “This step not only diversifies payment options, but also establishes an integrated digital economic model that supports the objectives of the Dubai Cashless Strategy, contributes to achieving the Dubai Economic Agenda D33, and enhances the efficiency of the government services ecosystem.”

Seamless Transition to a Cashless City

Omar Hamad Bu Shehab, Director-General of the DLD, said the pilot reflects the government’s readiness to adopt next-generation payment methods. He states that by testing payments with digital assets, the DLD can ensure that its systems are technically and operationally ready for future expansion. “This controlled implementation allows us to assess performance and compliance before full-scale adoption,” he stated.

Additionally, Ahmed Ali Muftah, Executive Director of the Central Accounts Sector at DOF, explained that the initial trial serves as a technical evaluation to assess the potential for future integration of digital assets in government payments. “Our aim is to verify system efficiency and ensure the highest levels of security once officially launched,” he said.

Lastly, Amna Mohammed Lootah, Director of the Digital Payment Systems Regulatory Division at DOF, confirmed that the transaction was executed in a secure, closed environment, with settlement completed in UAE dirhams. “This first-of-its-kind transaction represents progress toward the Dubai Cashless Strategy, which targets digitising 90% of financial transactions by 2026,” she said.

Finally, Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, said the bank’s involvement highlights its support for responsible innovation within regulated frameworks. “We are proud to partner with the Dubai Department of Finance on this pilot, as it reflects our commitment to advancing Dubai’s vision of becoming a global leader in digital finance through secure, future-ready financial infrastructure.”

The successful pilot marks an early but significant step in Dubai’s roadmap toward integrating digital assets into its public finance ecosystem, reinforcing the emirate’s position as a pioneer in government-led financial innovation.

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