DOF And DLD Conduct Initial Implementation Of Digital Assets For Government Fees In UAE Dirham

Dubai Finance (DOF) has initiated a technical trial to facilitate the payment of government service fees using digital assets, specifically cryptocurrencies, settled instantly in UAE dirhams. This pilot transaction was executed in partnership with the Dubai Land Department (DLD) via the DubaiPay platform, overseen by Digital Dubai Authority (DDA), and a digital asset platform licensed by the Central Bank of the United Arab Emirates (CBUAE).

The initial transaction involved issuing a Property Map service, serving as a test for technologies and systems within a secure environment before an official launch. Abdulrahman Saleh Al Saleh, Director-General of DOF, stated that this achievement is a proactive step towards future digital transactions in Dubai. He emphasised that it aligns with the emirate's efforts to adopt advanced financial technologies while maintaining security and regulatory compliance.

Hamad Obaid Al Mansoori, Director-General of DDA, highlighted that this implementation signifies a new milestone in Dubai's digitalisation journey. It represents progress towards establishing the 'City-as-a-Service' concept by integrating modern financial technologies with government services into a seamless experience. This initiative not only diversifies payment options but also supports the Dubai Cashless Strategy and contributes to achieving the Dubai Economic Agenda D33.

Omar Hamad Bu Shehab, Director-General of DLD, noted that testing government fee payments using digital assets demonstrates the government's commitment to adopting cutting-edge digital technologies before full-scale implementation. This pilot marks an essential first step in assessing system efficiency and potential expansion opportunities.

Ahmed Ali Muftah, Executive Director of Central Accounts Sector at DOF, explained that this initial phase is part of evaluating payment technologies involving digital assets. The goal is to verify systems' operational efficiency and security before official adoption. The test aims to provide recommendations on expanding their use in future applications.

Amna Mohammed Lootah, Director of Digital Payment Systems Regulatory Division at DOF, confirmed that this pioneering government transaction using digital assets was conducted securely. The transaction value was settled in UAE dirhams through integrated systems ensuring regulatory compliance. This effort supports the Dubai Cashless Strategy's objective to digitise 90% of financial transactions by 2026.

Collaborative Efforts for Innovation

Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, expressed that this initiative underscores Emirates NBD's strategic commitment to responsibly integrating emerging technologies within the regulated financial landscape. Their involvement in this pilot reflects dedication to advancing Dubai's ambition as a global leader in innovation and digital finance.

This collaborative effort between various entities highlights Dubai's commitment to fostering an innovative financial ecosystem. By embracing digital asset transactions for government services, Dubai aims to enhance its position as a hub for financial innovation while ensuring security and regulatory compliance are maintained throughout the process.

With inputs from WAM