TLDR
- The UAE federal government has approved AE Coin for paying government service fees.
- AE Coin is an AED stablecoin issued and powered by Al Maryah Community Bank.
- Individuals and businesses can now use AE Coin through the AEC Wallet for official payments.
- Major banks including ADIB and CBD signed agreements to support AE Coin payments.
- Network International is working with MBank to build the necessary payment infrastructure.
The UAE has formally recognized AE Coin, an AED stablecoin developed by MBank, for federal government fee payments, and the move allows both individuals and businesses to use AE Coin through the AEC Wallet across multiple public services, marking a regulated step forward in the nation’s digital infrastructure.
UAE Enables AE Coin for Government Fee Payments
The Ministry of Finance confirmed AE Coin’s official use across federal entities for government service payments. This development followed a series of MOUs signed between MBank and key partners, including Network International, Commercial Bank of Dubai, and Abu Dhabi Islamic Bank.
These agreements aim to integrate AE Coin with existing government channels without disrupting compliance frameworks or internal controls.
His Excellency Saeed Rashed Al Yateem, Assistant Undersecretary for Resources and Budget at the Ministry of Finance, said the move supports UAE’s digital strategy.
“We are building a nation with a fully integrated digital and financial system,” he stated.
He also said that AE Coin usage would speed up revenue collection, reduce operational costs, and enhance financial reporting accuracy.
AE Coin operates on a blockchain-powered infrastructure and enables real-time payments, thus offering efficient and secure transaction methods.
AED Stablecoin AE Coin Backed by Mbank and Partners
MBank, the issuing institution of AE Coin, is collaborating with leading banks and payment processors to support national usage. The AED stablecoin aligns with UAE Central Bank regulations that permit only Dirham-backed tokens for domestic payments.
Mohammed Wassim Khayata, CEO of MBank, said this step illustrates the use of digital assets in regulated public services. He emphasized that AE Coin is built to meet legal and security standards across all use cases.
Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, said, “We are enabling AE Coin acceptance through our acquiring network for better customer convenience.”
Amit Malhotra of ADIB added that the bank is one of the first to support AE Coin for government-related services.
Murat Cagri Suzer, Group CEO of Network International, reiterated that their infrastructure is ready to support AE Coin payments through secure digital channels.
Foreign Payment Tokens Remain Limited to Specific Use
Universal Digital Intl Limited, regulated by ADGM’s FSRA, launched a foreign payment token called USDU. This token is backed fully by US dollars and registered with the Central Bank of the UAE.
USDU is permitted only within ADGM’s controlled environment for transactions involving digital assets and derivatives.
The UAE Central Bank distinguishes local and foreign payment tokens, allowing only AED stablecoins for national public transactions.
Therefore, USDU cannot be used for domestic government payments, even though it is a regulated asset.
Universal also issued a fiat reference token for professional clients, further diversifying its offerings under the FSRA framework.
The regulatory guidelines ensure that only AED-backed tokens like AE Coin can operate in national payment flows, enhancing legal clarity.
