AE Coin is AED stablecoin of choice for UAE Federal government

The UAE Federal government has recognized 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.

As per the announcement this underscores the UAE’s global leadership in regulated digital-asset innovation and reinforces the country’s commitment to building a secure, efficient, and technology-driven government-services ecosystem.

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.

AE Coin has become 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.

His Excellency Saeed Rashed Al Yateem, Assistant Undersecretary for Resources and Budget, Ministry of Finance, noted that this recognition is a strategic step positioning the UAE as an advanced nation with a fully integrated financial and digital infrastructure. He explained, “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.”

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 otherhand 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 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. This initiative is another example of how UAE is building a secure, inclusive, and digitally empowered economy where modern payment solutions enhance everyday experiences and support the nation’s long-term vision for financial leadership.

As for the participating banks, Amit Malhotra, Global Head of Retail Banking at ADIB, noted that ADIB bank 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.

Universal Digital Intl Limited (“Universal”), regulated by the Financial Services Regulatory Authority (“FSRA”) of Abu Dhabi Global Market (“ADGM”) in 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 assets derivates. Of course USDU cannot be used for UAE domestic payments as the UAE Central Bank only considers AED backed stablecoins as legal currencies.

UAE Central Bank also offered in-principle approval for the RAK Bank AED stablecoin. Zand Bank launched its Central Bank regulated, multi-chain AED backed stablecoin on public blockchains.