The UAE federal government has recognized the regulated AED stablecoin, AE Coin, powered by MBank (Al Maryah Community Bank), for government-fee payments. UAE businesses and individuals will be able to pay government service fees using AE Coin and its associated AEC Wallet.
To ensure that AE Coin can be utilized by a wide range of individuals and businesses for governmental payments, banks such as the Commercial Bank of Dubai, Abu Dhabi Islamic Bank and the payments infrastructure provider Network International have all signed MOUs with Mbank, to establish the payments infrastructure required across federal ministries, authorities and government service channels.
UAE banks onboard for AE Coin payments
As per the announcement, the UAE sees the recognition as a sign of its global lead in regulated digital-asset innovation and reinforces the country’s commitment to building a secure, efficient, and technology-driven government-services ecosystem.
His Excellency Saeed Rashed Al Yateem, Assistant Undersecretary for Resources and Budget, Ministry of Finance, noted that the UAE is setting up as an advanced nation with a fully integrated financial and digital infrastructure.
He also noted that this would accelerate revenue collection processes, reduce operational costs and streamline reconciliation and auditing procedures. It would also offer a comprehensive and accurate view of financial transactions at the national level.
On the other hand, users will be able to make payments instantly, efficiently, and securely.
The CEO of MBank, Mohammed Wassim Khayata, also sees this as a powerful demonstration of how regulated digital finance can enhance public services. Ramez Rafeek, General Manager of AED Stablecoin LLC, noted that this was a milestone for the virtual assets and payment token industry in the MENA region.
“This partnership underscores our strong commitment to shaping the future of payments and driving meaningful innovation in the UAE,” said Dr. Bernd van Linder, CEO of CBD. “By enabling AE Coin acceptance through our acquiring network, we are creating new opportunities for businesses and federal services to deliver greater flexibility and convenience to their customers.”
As for the participating banks, Amit Malhotra, Global Head of Retail Banking at ADIB, noted that ADIB was proud to be among the first institutions to enable AE Coin payments for governmental services, as was Murat Cagri Suzer, Group Chief Executive Officer of Network International.
UAE’s ADGM approved the first foreign payment token
Universal Digital Intl Limited (“Universal”), regulated by the Financial Services Regulatory Authority (“FSRA”) of Abu Dhabi Global Market (“ADGM”) in the UAE, issued both a fiat reference token that can cater to professional clients, as well as a foreign payment token issuer with the Central Bank of the UAE.
The fully USD-backed stablecoin USDU, the registered foreign payment token, can be used for domestic payment for digital assets and digital asset derivatives. Of course, USDU cannot be used for UAE domestic payments as the UAE Central Bank only considers AED-backed stablecoins as legal currencies.
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Source: https://www.cryptopolitan.com/uae-recognizes-aed-stablecoin-for-payments/
