In a significant move towards a cashless economy, Dubai has partnered with Crypto.com to facilitate cryptocurrency payments for government services. Upon completion of the technical arrangements, individuals and businesses will be able to pay fees using Crypto.com's digital wallets, which are licensed by the Virtual Assets Regulatory Authority (VARA). The cryptocurrency will then be converted into dirhams for payment purposes, as outlined in a recent announcement. The agreement is expected to introduce a new digital payment channel, harnessing financial technology to drive economic growth.
Dubai's cashless strategy is projected to contribute at least 8 billion dirhams annually to the local economy. As a burgeoning crypto hub in the Middle East, Dubai has been actively developing its cryptocurrency sector, establishing VARA as the world's first independent crypto regulator in 2022 and issuing licenses to major exchanges like Binance and OKX. The city is also pursuing a metaverse strategy, aiming to attract over 1,000 metaverse and blockchain companies by 2030.