A fresh wave of the crypto landscape has hit the UAE, signaling the need for more blockchain adoption. Crypto for property payment, crypto for shopping, crypto for ticket booking, and is crypto going to be for everything? That question is debatable, although some experts, like Robinhood CEO Vlad Tenev, have said that crypto will replace traditional finance. Now, in the Abu Dhabi emirate of the UAE, taxi passengers can pay in cryptocurrency using the country’s stablecoin AE Coin (AEC)!
Passengers using Tawasul taxis can pay via AE Coin
In a landmark development, Tawasul Transport and Al Maryah Community Bank (Mbank) collaboratively launched the first crypto payment system in taxis using the stablecoin. This is an amazing stride for the UAE, as it is going a long way ahead in blockchain, web3, and stablecoin adoption. The new initiative now puts the UAE among other countries that have used crypto for taxi ride payments.
What is an AE Coin?
AE Coin, or AEC, is a UAE Dirham-pegged stablecoin approved by the Central Bank of the UAE government in December 2024. The stablecoin is designed to function for fast, secure, and regulated digital payments. The stablecoin was launched by Mbank and is fully compliant with the UAE’s crypto and financial regulations.
How to pay for taxi rides using cryptocurrency?
AEC Wallet plays a key role in processing crypto payments for Tawasul taxis. The wallet offers a simple and secure payment experience, enabling users to do transactions by scanning a QR code inside the taxi. Like how stablecoins are pegged to USD, AE Coin is also backed by UAE Dirham, at a fixed rate of 1 AED = 1 AEC. AEC Wallet is now available for free on Google Play, Apple Store, and Huawei AppGallery.
In an official statement, Ghena Jbour, General Manager of Tawasul Transport, noted: “We believe that digital transformation is not merely an option — it is a necessity to meet the evolving expectations and daily needs of users.” The landmark initiative also aligns with Abu Dhabi’s vision of building a smart and sustainable transport system, in his opinion.
Meanwhile, Mbank’s share in launching crypto payment for taxis goes well with their vision to drive the future of digital payments in the UAE, according to Mohammed Wassim Khayata, CEO of Mbank. Also, the bank, in partnership with the government and businesses, is planning to expand AEC adoption across various sectors in the country.
Why are stablecoins good for supporting payments?
Stability makes a stablecoin an asset to back payments. Pegged to stable currencies or fiat currencies like AED or USDT, the price of stablecoins does not fluctuate during market volatility, while other cryptocurrencies experience ups and downs. What’s more, stablecoins enable faster, borderless, and low-cost payments. All these compiled reasons also make governments and institutions include stablecoins in their finance. And, besides, UAE, these countries are noteworthy in integrating stablecoin usage: Japan, Singapore, the European Union, Hong Kong, the UK, and the US.
