In a significant move towards enhancing the digital government infrastructure in the region, AE Coin has been approved as a payment method across all federal government entities. This establishes it as the first stablecoin officially licensed by a regulatory authority for settling government fees nationwide.
This endorsement marks a crucial milestone for the UAE’s journey to develop a comprehensive digital economy ready for the future. It will allow individuals and businesses to pay for government services using AE Coin, the first authorized payment token issued by the Central Bank of the UAE, which is fully backed by the UAE Dirham through the AEC Wallet provided by Al Mariah Bank.
This announcement underscores the UAE’s global leadership in structured innovation in digital assets and reinforces its commitment to building a secure, efficient government ecosystem enhanced by modern technology.
To facilitate this adoption, Dubai Commercial Bank, Abu Dhabi Islamic Bank, and Network International have signed separate memorandums of understanding with Al Mariah Bank.
These agreements lay down the necessary banking infrastructure to enable AE Coin payment transactions through ministries, federal agencies, and channels for delivering government services.
The official announcement of these memorandums was made in the presence of Saeed Rashid Al Yateem, Assistant Undersecretary for the Budget and Government Revenue Sector, during the Abu Dhabi Finance Week (ADFW), a fitting platform to highlight this achievement, positioning the UAE at the forefront of adopting Web3 technologies at the institutional level and digital transformation in the government sector.
This collaboration between leading national banks and an authorized payment token issuer demonstrates the ability of traditional financial institutions and regulated virtual assets to work together to develop a government payment system that adheres to the highest security and compliance standards.
Through this pioneering framework, AE Coin becomes the first stablecoin officially recognized for direct use in paying government fees, creating a seamless bridge between regulated digital blockchain value and essential government services, allowing for secure and efficient digital payment flows nationwide.
Advanced Smart Services Model
Said Rashid Al Yateem stated, “The adoption of AE Coin as a payment method for all federal government entities represents a strategic step that solidifies the UAE’s standing as one of the most advanced nations in establishing an integrated financial and digital infrastructure. Integrating this fully-backed, authorized digital currency into the government collection system demonstrates the country’s capacity to leverage advanced technology, including blockchain, to develop more efficient and reliable services.”
He added, “This digital shift enhances the government’s vision to accelerate revenue collection processes, reduce operational costs, streamline compliance and auditing procedures, while providing a comprehensive and accurate view of financial transaction movements nationwide. This elevated readiness enables the federal government to transition to more sophisticated models of smart services. Furthermore, this initiative is a qualitative leap for users, allowing them to make payments instantly at minimal costs and with the highest levels of protection and security, thereby promoting financial inclusion and providing more flexible digital payment options. This reflects the UAE’s commitment to supporting the foundations of a digital economy and establishing a globally leading financial innovation environment.”
The Power of Digital Financing
Mohamed Waseem Khayyata, CEO of Al Mariah Bank, remarked, “Today’s announcement marks a transformative step in the state’s financing ecosystem and the journey towards a digital government. Enabling the use of AE Coin for federal government fee payments embodies the strength of organized digital financing in enhancing public services, simplifying transactions, and accelerating national innovation. We are proud to collaborate with our partners to support this historic achievement in the UAE’s digital transformation journey.”
A Pivotal Milestone
Ramzi Rafiq, General Manager of AED Stablecoin LLC, stated, “This achievement is a pivotal milestone for the virtual asset and payment token sector in the region. AE Coin is designed to enable secure, licensed blockchain payments in everyday life, and its adoption for settling government fees sets a new standard for real-world value utilization. This recognition, under the regulatory oversight of the Central Bank of the UAE, shows how fully-backed licensed digital assets can safely integrate within the vital national infrastructure.”
Supporting the Future of Payments
Dr. Bernd van Linder, CEO of Dubai Commercial Bank, commented, “This partnership reflects our steadfast commitment to supporting the future of payments and fostering purposeful innovation in the UAE. By enabling the acceptance of AE Coin through our subscription network, we aim to provide new opportunities for commercial entities and government services to offer higher levels of flexibility and convenience to their clients. This initiative serves as another example of the UAE’s efforts to build a secure, inclusive, digital economy, with modern payment solutions enhancing daily experiences and supporting the national vision for financial leadership in the long run.”
The memorandum of understanding was signed on behalf of Dubai Commercial Bank by Barbara Riccardi, General Manager and Co-Head of Corporate and Institutional Banking, during the Abu Dhabi Finance Week, reaffirming Dubai Commercial Bank’s commitment to building strategic partnerships that support the development of the digital economy.
In this context, Amit Malhotra, Global Head of Retail Banking at Abu Dhabi Islamic Bank, mentioned, “We take pride in being among the first institutions to enable AE Coin payments for government services. This partnership underscores our commitment to digital innovation and supports the UAE’s vision for a tech-driven future economy. By integrating regulated digital assets into our payment infrastructure, we contribute to reinforcing the country’s leadership in financial technology.”
Murad Chaghri Suzer, Group CEO of Network International, stated, “Enabling AE Coin for national use represents a crucial step in how regulated stablecoins are flowing within the UAE economy on a large scale. By expanding its acceptance in daily transactions, the UAE is establishing a global precedent for how blockchain-based payments can be securely applied within real-world commerce. We are proud to support this integrated system through our payment infrastructure, contributing to secure and seamless acceptance of AE Coin for businesses and consumers throughout the nation.”