In a groundbreaking move for the UAE’s digital economy, Abu Dhabi has become the first city in the country to enable taxi fare payments using a stablecoin pegged to the UAE Dirham (AED).
The initiative is spearheaded by the Department of Municipalities and Transport in collaboration with Tawasul Transport, introducing AE Coin (AEC) as a new payment option for taxi services.
The major development was formalized through an agreement between the Integrated Transport Center (ITC) and Al Maryah Community Bank (MBank).
A live demonstration was successfully conducted where a taxi ride was paid for using AE Coin through the AEC Wallet, showcasing the practical implementation of blockchain-based digital payments.
Supporting Smart and Sustainable Transport Goals
This initiative aligns with Abu Dhabi’s broader smart city and digital transformation strategy.
Ghena Jbour, General Manager of Tawasul Transport, emphasized that this move is a key step in simplifying the public transport payment process by introducing multiple, modern payment options.
She highlighted that the adoption of AE Coin supports Abu Dhabi’s vision of building a smart, efficient, and sustainable transport infrastructure.
The stablecoin solution is expected to reduce friction in transactions, enhance customer convenience, and further modernize transport services across the capital.
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AE Coin Brings Blockchain Technology to the Forefront
According to Mohammed Wassim Khayata, CEO of MBank, AE Coin provides a secure, compliant, and future-ready method of digital payment.
Khayata described the integration as a major milestone in promoting cashless transactions and public access to blockchain innovations.
He noted that the AE Coin system complements the UAE’s Digital Government Strategy 2025 by introducing user-friendly tools for everyday transactions.
MBank plans to expand the use of the AEC Wallet beyond transport, enabling stablecoin adoption across various governmental and commercial services throughout the emirate.
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Growing Ecosystem: AE Coin Now Accepted by Air Arabia
The reach of AE Coin is quickly expanding beyond public transport. UAE-based airline Air Arabia has become the first airline in the MENA region to accept an AED-pegged stablecoin for payment.
Travelers can now book flights using the AEC Wallet developed by MBank, reinforcing AE Coin’s usability across different sectors.
The step illustrates the growing momentum behind digital currency adoption in the UAE and its integration into mainstream services, supporting consumer demand for modern, digital-first financial tools.
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A Regulatory Milestone in the UAE’s Crypto Landscape
AE Coin stands out as the first AED-pegged stablecoin licensed in the UAE, marking a significant regulatory and financial achievement for the nation.
The successful deployment in both the transportation and aviation sectors reflects the coin’s practical utility and regulatory compliance.
Ramez Rafeek, General Manager of AE Coin, believes this is only the beginning for digital currencies in the region.
He asserts that stablecoins like AE Coin can integrate seamlessly into daily life, promoting more efficient, transparent, and secure transactions.
With strong institutional support and a growing ecosystem of use cases, AE Coin is poised to play a pivotal role in the UAE’s digital financial future.
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