Crypto breaks through in the UAE as first gov't entity accepts payment
KIKLABB announced on Tuesday that it has become the first government-owned licensing entity in the UAE to accept cryptocurrency as payment.
The Dubai Government-owned company said that cryptocurrencies, including Bitcoin, Ethereum and Tether (USDt), can now be used to pay for trade licences and visa fees in a move designed to encourage entrepreneurs to set-up and scale-up in the UAE.
Tasawar Ulhaq, CEO of KIKLABB, said: “We’ve seen growing interest in cryptocurrency with several customers in the blockchain and fintech sectors part of the KIKLABB community, so it really was just a matter of time before we recognised Bitcoin, Ethereum and Tether.
“Cryptocurrencies are the payment method of the future. KIKLABB has partnered with some of industry leaders to enable this solution.”
According to research firm MarketsandMarkets, the global blockchain market size is estimated to rise from $3 billion in 2020 to $39.7bn by 2025.
The UAE is already a leader in the adoption of blockchain with a national strategy in place and the aim to conduct 50 percent of government transactions using the payment technology by 2021. In addition, the Dubai Future Foundation estimates that the UAE could save over $3bn simply by implementing advanced blockchain technologies.
“We’re in talks with high-profile players in the cryptocurrency sector who are exploring entry into Dubai. In addition, we have a robust community of local and international companies associated with smart contracts, blockchain and private equity working alongside start-ups in the fields of education, healthcare, and food technology,” added Ulhaq.
Last month, Dubai Multi Commodities Centre (DMCC) announced a partnership with CV VC and CV Labs to launch Crypto Valley, the world's largest ecosystem for cryptographic, blockchain and distributed ledger technologies.
Designed to foster growth, collaboration and integrity across the global blockchain economy, the DMCC Crypto Valley will offer a variety of services including incubation for early-stage start-ups, co-working facilities, innovation services for corporate clients, blockchain and entrepreneurship training, education, events, mentoring and funding.
Signed on the sidelines of the World Economic Forum in Davos, the agreement sees DMCC work alongside both CV VC, and its subsidiary CV Labs, to develop an ecosystem in Jumeirah Lakes Towers, DMCC's business district, where over 17,000 companies are currently registered.
Research from DMCC's Future of Trade report found that blockchain could help reduce up to 20 percent of the physical paper costs associated with global trade, currently estimated at $1.8 trillion.