In a landmark move for the region’s digital economy, the UAE federal government has officially recognized AE Coin as a valid payment method for all its services. This makes the UAE the first country in the wider region to authorize a regulator-licensed stablecoin for nationwide government fee payments, marking a significant leap in its future-ready economic vision.
The initiative enables individuals and businesses to settle government service fees using AE Coin, the country’s first Central Bank-licensed, fully reserved, AED-backed payment token. The system is powered by the AEC Wallet from Al Maryah Community Bank (Mbank), reinforcing the nation’s commitment to building a secure, efficient, and technology-driven government services ecosystem.
A Regional First In Digital Government Payments
To build the necessary infrastructure for this nationwide rollout, Al Maryah Community Bank (Mbank) has signed separate Memoranda of Understanding (MoUs) with Commercial Bank of Dubai (CBD), Abu Dhabi Islamic Bank (ADIB), and Network International. These agreements will establish the payment channels required to facilitate AE Coin transactions across all federal ministries and authorities.
The collaboration was formally announced during Abu Dhabi Finance Week (ADFW), highlighting the UAE’s leadership in institutional Web3 adoption. This framework creates a seamless bridge between regulated blockchain-based value and essential public services, allowing for secure and efficient digital payments on a national scale.
An Advanced Model For Smart Government Services
His Excellency Saeed Rashed Al Yateem, Assistant Undersecretary for Resources and Budget at the Ministry of Finance, commented on the strategic importance of the move.
“Recognizing AE Coin as a payment method across all federal government entities represents a strategic step that reinforces the UAE’s position as one of the most advanced nations in building a fully integrated financial and digital infrastructure,” he stated. “Integrating this fully reserved, UAE dirham–backed, regulator-licensed digital currency into the government revenue system reflects the country’s ability to harness advanced technologies, most notably blockchain, to deliver more efficient and reliable services.”
His Excellency added that the transformation will accelerate revenue collection, reduce operational costs, and streamline auditing procedures while offering users instant, low-cost, and secure payment options.
Bridging Traditional Finance and Digital Assets
The initiative is a powerful demonstration of how traditional financial institutions and regulated digital assets can collaborate to modernize public sector transactions.
Mohammed Wassim Khayata, CEO of Al Maryah Community Bank, described the announcement as a “transformative moment” for the UAE’s financial system. “Enabling AE Coin for federal government payments is a powerful demonstration of how regulated digital finance can enhance public services, simplify transactions, and accelerate national innovation,” he said.
Ramez Rafeek, General Manager of AED Stablecoin LLC, added, “This is a defining milestone for the virtual-asset and payment-token industry in the region. AE Coin was engineered to bring secure, regulator-approved blockchain payments into everyday life, and enabling government-fee payments sets a new regional benchmark for real-world utility.”
Financial partners echoed this sentiment, emphasizing their commitment to driving innovation. Dr. Bernd van Linder, CEO of CBD, noted the initiative creates “new opportunities for businesses and federal services to deliver greater flexibility and convenience,” while Murat Cagri Suzer, Group CEO of Network International, stated, “The national enablement of AE Coin represents a pivotal step in how regulated stablecoins can flow through the UAE economy at scale.”
About AE Coin
AE Coin is the United Arab Emirates’ first Central Bank–licensed, fully reserved, AED-backed payment token. It is designed to provide a secure and stable digital currency pegged to the UAE Dirham, enabling seamless and regulator-approved blockchain-based payments for everyday and institutional use cases.
Source: Zawya
