The United Arab Emirates has achieved a groundbreaking milestone in digital governance by formally authorizing the use of AE Coin, a regulated stablecoin, as an official payment method for all federal government services. This landmark decision represents the first nationwide implementation of a central bank-licensed stablecoin for government fee payments anywhere in the Middle East region.
The strategic initiative, announced during Abu Dhabi Finance Week, positions the UAE at the forefront of institutional Web3 adoption and public-sector digital transformation. AE Coin operates as the UAE’s first central bank-licensed, fully reserved payment token backed by the UAE dirham, administered through the AEC Wallet platform powered by Al Maryah Community Bank (Mbank).
To operationalize this visionary framework, three major financial institutions—Commercial Bank of Dubai (CBD), Abu Dhabi Islamic Bank (ADIB), and Network International—have executed separate Memoranda of Understanding with Mbank. These agreements establish the necessary payment infrastructure to facilitate AE Coin transactions across all federal ministries, authorities, and government service channels.
Saeed Saeed Rashed Al Yateem, Assistant Undersecretary for Resources and Budget at the Ministry of Finance, emphasized that this recognition “reinforces the UAE’s position as one of the most advanced nations in building a fully integrated financial and digital infrastructure.” The integration of this blockchain-based digital currency into government revenue systems demonstrates the country’s commitment to harnessing advanced technologies for more efficient and reliable public services.
Industry leaders celebrated the development as transformative for the UAE’s financial ecosystem. Mohammed Wassim Khayata, CEO of Al Maryah Community Bank, described the move as “a powerful demonstration of how regulated digital finance can enhance public services, simplify transactions, and accelerate national innovation.” Ramez Rafeek, General Manager of AED Stablecoin LLC, noted that this implementation “sets a new regional benchmark for real-world utility” of virtual assets.
The initiative aligns with the UAE’s broader vision of creating a next-generation digital government where services become more accessible, responsive, and integrated across channels. By enabling instant, low-cost payments with enhanced security protections, the framework advances financial inclusion while providing more flexible digital payment options for citizens and businesses alike.