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Abu Dhabi Judiciary Adopts Crypto for Payments of Legal Fees

Highlights:

  • Abu Dhabi courts now accept crypto payments for legal fees via AE Coin.
  • AE Coin has backing from the UAE central bank and is pegged to the dirham.
  • This is the first official crypto payment rollout by a Middle East government body.

The Abu Dhabi Judicial Department (ADJD) is going to start accepting AE Coin related to court payments. The UAE Central Bank regulates this stablecoin. Further, the move will mark the first legal adoption of crypto in the region to pay legal fees using digital currency.

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According to the press release, ADJD launched the AE Coin using the AEC Wallet in a strategic alliance with Al Maryah Bank. The judicial fees can now be paid using secure digital currency by users, complementing the emerging digital finance system in the UAE.

The initiative becomes a regional standard of blockchain integration into government services. The collaboration highlights the UAE’s swift move towards a cashless government system. Moreover, AE Coin offers an efficient and quick way to substitute traditional payment systems. In addition, ADJD promotes the use of fintech in the provision of public services by implementing crypto payments in the legal field. The project improves interoperability between banking and court systems and makes the justice sector more transparent and user-friendly.

First Stablecoin Adoption in Legal Services

The AE Coin is the first stablecoin licensed in the UAE, pegged to AED. Moreover, it is pegged 1:1 to the dirham, which makes it have a stable price. This support provides users with a controlled and predictable experience of digital payments.

MBANK and ADJD have become the first ones in the Middle East to introduce crypto to pay legal fees, demonstrating how government is increasingly trusting regulated digital assets. AE Coin will now be applicable in different services, including case filing and administrative court fees.

Other UAE agencies, besides courts, have embraced AE Coin. The AE Coin has been enabled in the Department of Municipalities and Transport to pay for taxis. It is also accepted in airlines such as Air Arabia to book flights, highlighting its increasing utility across sectors. The issuer of AE Coin, MBANK, intends to extend its digital currency selection. Moreover, the increasing enthusiasm in crypto payments has triggered more stablecoin projects within the UAE. The state considers this as one of its broader policies in the digital economy.

UAE Strengthens Digital Economy with Crypto Payments

The UAE is making firm footprints toward financial digitization. By accepting crypto as a means of paying legal fees, it is achieving its aim of being a fintech leader. The UAE is already crypto-ready, with more than 30% of its residents already being holders of digital assets.

In addition to AE Coin, other AED-backed stablecoins will also be introduced in the near future. This involves the efforts of large organizations such as ADQ and First Abu Dhabi Bank. The Central Bank also unveiled plans for its own CBDC by year-end. Moreover, such initiatives align with the vision of the country to modernize government operations. Legal and financial sectors are at the forefront of change, which is intended to provide faster and more accessible public services.

In late April, the leading financial players in Abu Dhabi announced the concept of a stablecoin issued in Dirham to facilitate safe payments worldwide. The stablecoin will be run on the ADI blockchain, which is a system created by a nonprofit ADI Foundation. With the regulatory approval, the project may enhance digital finance not only locally but also outside the UAE.

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