Although Bitcoin has been traded mostly for its store of value, the top cryptocurrency is gradually gaining popularity as a means of payment all over the world.
It’s no longer news that top companies like Paypal, Mastercard, and even Tesla have decided to allow dealings in Bitcoin. But the cryptocurrency is still lacking a lot when it comes to government support.
For that, it’s exciting news that a UAE government entity is now offering support for cryptocurrency payments. Dubai-based free zone KIKLABB confirmed it has started accepting Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), making it the first UAE government agency to accept Bitcoin payments.
The acceptance means all payments related to visa fees and licensing is issues can be paid with any of the cryptocurrencies mentioned above. Customers are now free to register or pay for their business licenses from anywhere using their smartphones, the entity stated.
A friendly environment for Bitcoin adoption
UAE is one of the Middle Eastern countries that provide a favorable environment for the adoption of Bitcoin and other cryptocurrencies. It has provided a solid framework for blockchain technology, which is the base technology that powers most cryptocurrencies.
A project made possible via collaboration
KIKLABB is initiating this project with the collaboration of international partners. Chief executive officer of KIKLABB Tasawar Ulhag commented on the initiative
“We’re the first government owned licensing entity in the UAE to accept cryptocurrency payments,” he stated.
He stated that blockchain technology is growing rapidly in the financial landscape and it will forever change the way people do business in the future.
UAE gradually warming up to blockchain technology
The Dubai government has already started developing a framework that will implement advanced blockchain technologies.
The new framework could lead to wider adoption and increased acceptance of the technology and its ensuring cryptocurrencies.
The national blockchain project also aims to carry out about 50% of government transactions using blockchain technology.
Besides, the Dubai Future Foundation has estimated that UAE may save up to $3 billion annually if it implements advanced blockchain technologies.
Payment methods for the future
While other sectors are gradually warming up to the technology, the local real estate has seen an increased interest in Bitcoin-driven deals. Now, more traders and investors are gradually seeing the need to start accepting Bitcoin and using it for payments.
As a free trade zone, KIKLABB enables businesses to get a license and set up shops in Dubai. The entity also helps the companies process their visa.
Ulhag pointed out that opening the door for Bitcoin and crypto acceptance will give more opportunities to businesses to access the Dubai market. He noted that there are several customers in the fintech and blockchain sectors who would prefer paying with crypto coins.
Ulhad added that cryptocurrency is gradually becoming a core aspect of the financial system, He said it’s only a matter of time before it’s accepted everywhere, as “they are the payment methods of the future.”
