The UAE marked on Monday a landmark advancement for the region’s digital-government infrastructure, recognizing AE Coin as a payment method for all federal government authorities.
This move marks the first time in the wider region that a regulator-licensed stablecoin is authorized for nationwide government-fee payments.
This historic recognition represents a major leap forward in the UAE’s vision for a fully digital, future-ready economy, enabling individuals and businesses to pay government service fees using AE Coin, the UAE’s first Central Bank–licensed, fully reserved, AED-backed payment token through AEC Wallet powered by Al Maryah Community Bank (Mbank).
Mbank expands partnerships to operationalize AE Coin recognition
To operationalize this recognition, Commercial Bank of Dubai (CBD), Abu Dhabi Islamic Bank (ADIB) and Network International have each signed separate Memoranda of Understanding (MoUs) with Mbank.
These agreements establish the payments infrastructure required to enable AE Coin payments across federal ministries, authorities and government service channels.
Through this pioneering framework, AE Coin becomes the first to be formally recognized for direct use in paying government fees. This development creates a seamless bridge between regulated blockchain-based value and essential public services, allowing digital payments to flow securely and efficiently on a national scale.
“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. 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,” said His Excellency Saeed Rashed Al Yateem, Assistant Undersecretary for Resources and Budget, Ministry of Finance.
Regulated digital finance to enhance UAE’s public services
Al Yateem explained that this digital transformation strengthens the government’s vision to accelerate revenue collection processes, reduce operational costs and streamline reconciliation and auditing procedures, while providing a comprehensive and accurate view of financial transactions at the national level. This enhances the federal government’s readiness to transition toward more advanced models of smart services.
It also marks a significant improvement for users, enabling them to make payments instantly, at minimal cost and with the highest levels of security and protection, advancing financial inclusion and offering more flexible digital payment options. This reflects the UAE’s commitment to supporting the foundations of the digital economy and fostering a globally leading financial innovation environment.
“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. This recognition, under the robust regulatory guidance of the Central Bank, demonstrates how licensed and fully reserved digital assets can safely integrate into critical national infrastructure,” said Ramez Rafeek, General Manager of AED Stablecoin LLC.
This initiative aligns with the UAE’s broader vision to build a next-generation digital government, where services are more accessible, responsive and integrated across channels, and where blockchain and tokenized value play a core enabling role under clear regulatory oversight.
