AE Coin: A payment method for UAE’s Federal Government authorities

Abu Dhabi: In a landmark advancement for the region’s digital-government infrastructure, AE Coin has been recognized as a payment method for all federal government authorities, marking 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).

The announcement 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 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.

The signed MoUs were formally announced in the presence of His Excellency Saeed Saeed Rashed Al Yateem, Assistant Undersecretary for Resources and Budget, Ministry of Finance during Abu Dhabi Finance Week (ADFW), a fitting platform for a milestone that places the UAE at the forefront of institutional Web3 adoption and public-sector digital transformation. This collaboration between leading national banks and a Central Bank–licensed payment token issuer demonstrates how traditional financial institutions and regulated virtual assets can work together to modernize government transactions.

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.

Saeed Rashed Al Yateem, Assistant Undersecretary for Resources and Budget, Ministry of Finance, said “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.”

He added: “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.”

Mohammed Wassim Khayata, CEO of Al Maryah Community Bank, stated: “Today’s announcement marks a transformative moment for the UAE’s financial system and its digital-government agenda. 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. We are proud to work alongside our partners to support this historic step in the UAE’s digital transformation journey.”

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. 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.”

“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.

The Memorandum of Understanding was signed on behalf of CBD by Barbara Riccardi, Co-Head of Wholesale Banking Group, during Abu Dhabi Finance Week, reinforcing CBD’s commitment to strategic partnerships that advance the nation’s digital economy.

Amit Malhotra, Global Head of Retail Banking at ADIB, said: “At Abu Dhabi Islamic Bank, we are proud to be among the first institutions enabling AE Coin payments for government services. This partnership underscores our commitment to digital innovation and supporting the UAE’s vision for a future-ready, technology-driven economy. By integrating regulated digital assets into our payment infrastructure, we are contributing to the nation’s leadership in financial technology.”

Murat Cagri Suzer, Group Chief Executive Officer of Network International, said, “We are proud to be the first fintech in the region to enable AE Coin acceptance and bring secure, seamless innovative payments experiences to businesses and consumers in the UAE. The national enablement of AE Coin represents a pivotal step in how regulated stablecoins can flow through the UAE economy at scale. By extending acceptance into everyday transactions, the UAE is setting a global precedent for how blockchain-based payments can be safely deployed in real-world commerce.”

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.