AE Coin…a payment method approved by federal government agencies in the UAE

In a landmark step towards developing the digital government infrastructure in the region, AE Coin was approved as a means of payment by all federal government agencies, thus becoming the first stable currency licensed by a regulatory body that is allowed to be used to pay government fees at the state level.

This accreditation represents an important achievement in the UAE’s journey towards building an integrated, future-ready digital economy, as it will allow individuals and institutions to pay government service fees using AE Coin, the first payment token licensed by the Central Bank of the United Arab Emirates, and fully supported by the UAE dirham via the AEC Wallet wallet provided by the local Al Mariah Bank.

This announcement confirms the UAE’s global leadership position in the field of regulated innovation for digital assets, and reinforces its commitment to building a government system that is safe, effective, and enhanced with modern technology.

An unprecedented regional achievement in the field of government payments

To implement this accreditation, Commercial Bank of Dubai (CBD), Abu Dhabi Islamic Bank (ADIB), and Network International signed separate memorandums of understanding with the local Al Mariah Bank.

These agreements establish the necessary banking infrastructure to enable payment transactions in AE Coin across ministries, federal agencies, and government service delivery channels.

These memorandums were officially announced in the presence of His Excellency Saeed Rashid Al Yateem, Assistant Undersecretary of the Ministry of Finance for the Budget and Government Revenue Sector, during the activities of Abu Dhabi Financial Week (ADFW), which is an appropriate platform to highlight this achievement that places the UAE in the leadership of adopting Web3 technologies at the institutional level and digital transformation in the government sector.

This cooperation between leading national banks and a central bank-licensed payment token issuer demonstrates the ability of traditional financial institutions and regulated virtual assets to work together to develop the government payments ecosystem in a manner consistent with the highest standards of security and compliance.

Through this pioneering framework, AE Coin becomes the first stablecoin to be officially recognized for direct use in paying government fees, creating a seamless bridge between regulated blockchain-based digital value and core government services, and allowing digital payments to flow securely and efficiently nationwide.

An advanced model of smart services

Saeed Rashid Al-Yateem, Assistant Undersecretary of the Ministry of Finance for the Budget and Government Revenues Sector, said: “The adoption of the AE Coin as a means of payment by all federal government agencies represents a strategic step that consolidates the UAE’s position as one of the most advanced countries in building an integrated financial and digital infrastructure. The integration of this licensed digital currency, fully supported by the UAE dirham into the government collection system, reflects the country’s ability to employ advanced technology, most notably blockchain technology, to develop more efficient and reliable services.”

He added: “This digital transformation enhances the government’s vision of accelerating revenue collection processes, reducing operational costs, and simplifying matching and auditing procedures, in addition to providing a comprehensive and accurate view of the movement of financial transactions at the state level, which raises the federal government’s readiness to move to more advanced models of smart services. The initiative is also a qualitative shift for users as well, as it allows them to make payments immediately and at the lowest costs, and within the highest levels of protection and security, which enhances financial inclusion and provides more flexible digital payment options. This reflects the UAE’s commitment to supporting the foundations of the digital economy and consolidating an environment A world-leading financial innovation.”

Mohammed Waseem Khayata, CEO of Al Mariah Local Bank, said: “Today’s announcement represents a transformative step in the country’s financing system and in the digital government process. Enabling the use of AE Coin to pay federal government fees embodies the power of regulated digital finance in improving public services, simplifying transactions, and accelerating the pace of national innovation. We are proud to work with our partners to support this historic achievement in the UAE’s digital transformation journey.”

Ramez Rafiq, General Manager of AED Stablecoin LLC, added: “This achievement represents a turning point for the virtual assets and payment token sector in the region. AE Coin was designed to enable secure and licensed blockchain payments in everyday life, and its adoption to pay government fees sets a new standard for real-world use value. This recognition, under the regulatory supervision of the UAE Central Bank, reflects how fully licensed and backed digital assets can safely integrate within the vital national infrastructure.”

Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, said: “This partnership reflects our firm commitment to supporting the future of payments and promoting meaningful innovation in the UAE. By enabling the acceptance of AE Coin through our subscription network, we are working to provide new opportunities for commercial and government service entities to offer higher levels of flexibility and ease to their customers. This initiative represents an additional example of the UAE’s efforts in building a safe, inclusive and digital economy, where modern payment solutions contribute to improving daily experiences and supporting the vision National financial leadership in the long term.

The memorandum of understanding was signed on behalf of Commercial Bank of Dubai by Ms. Barbara Riccardi, General Manager and Co-Head of Corporate and Institutional Banking, during the activities of Abu Dhabi Financial Week, confirming Commercial Bank of Dubai’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, said: “At Abu Dhabi Islamic Bank, we are proud to be one of the first institutions to enable AE Coin payments for government services. This partnership confirms our commitment to digital innovation and supporting the UAE’s vision for a future technology-based economy. “By integrating regulated digital assets into our payment architecture, we are contributing to establishing the country’s leadership in fintech.”

Murat Çağrı Sozer, Group CEO at Network International, said: “Enabling the use of AE Coin at the national level represents a pivotal step in how regulated stablecoins will flow within the UAE economy on a large scale. By expanding their acceptance in daily transactions, the UAE is establishing a global precedent in how blockchain-based payments can be safely applied within real-world commerce. We are proud to support this integrated system through our payments infrastructure, and contribute to providing secure and seamless acceptance of the currency. AE Coin is available to businesses and consumers across the country.”

This trend supporting payment innovation comes within the UAE’s broader vision to build a new generation digital government. A more flexible and integrated government across channels, with blockchain technology playing a fundamental role in enabling it under clear and evolving regulatory oversight.