Air Arabia Accepts Stablecoin as Payment Option in the UAE

Air Arabia, a UAE-based airline, has announced that it will now accept AE Coin, a stablecoin backed by the UAE Dirham (AED). This bold step makes Air Arabia the first airline in the Middle East to use cryptocurrency for payments.

Air Arabia Embraces Digital Innovation

According to the press release, Air Arabia has partnered with Al Maryah Community Bank (Mbank), the UAE’s first digital financial institution, to help customers use AE Coin for payments. The AEC Wallet app lets Customers pay for flight bookings and related services. The app has been created to make transactions easier and improve users’ experience.

It is worth noting that this partnership is essential in the UAE’s efforts to improve digital services across industries. By allowing payments through AE Coin, Air Arabia also strengthens its payment options and supports its goal of becoming a leader in fintech innovation. AE Coin, tied 1:1 to the UAE Dirham, ensures stability and trust for widespread use. This is different from volatile cryptocurrencies.

Mohammed Wassim Khayata, the CEO of Mbank, expressed his enthusiasm about the partnership. He is confident the partnership with Air Arabia will provide customers with a flexible, secure, and affordable digital payment solution. 

Nations Explore the Use of Stablecoin

Recall that Russia included stablecoins in its legislative bill, potentially paving the way for their official use in cross-border payments. For Russia. Integrating stablecoins into its financial systems could circumvent the complexities and inefficiencies associated with traditional banking channels.

Meanwhile, several other countries are also looking for ways to reduce their dependence on the US dollar for trading. In 2022, the Philippines Central Bank (The Bangko Sentral ng Pilipinas) found stablecoins revolutionary for cross-border payments. Similarly, Stripe, the payment service provider, reintroduced cryptocurrency payments as stablecoins.

Co-founder and President John Collison emphasized the stability and functionality of stablecoins, particularly USD Coin (USDC).

Dubai, A Growing Crypto Hub

Dubai’s Department of Finance (DOF) recently signed an agreement with Crypto.com to allow residents and businesses to pay for government services using cryptocurrencies. The initiative is part of Dubai’s broader cashless strategy to transform the emirate into a fully digital society by 2026.

Dubai has continued to cement its reputation as a crypto-friendly jurisdiction. With this latest move, Dubai has become one of the first governments in the region to integrate stablecoin-based crypto payments into public service delivery.