Dubai School Is First in Gulf To Accept BTC and ETH for Tuition Fees

Key Insights:

• A Dubai-based school has become the first educational institution in the Middle East to accept crypto.
• Citizens School will accept Bitcoin and Ethereum for tuition fees.
• The school has tied up with a crypto platform that converts BTCs and ETHs to dirhams.

Dubai-based educational institution Citizens School will include a crypto payments option for tuition fees starting this September, making first of its kind in the Gulf.

The move soon follows Dubai’s Virtual Asset Regulation Law adoption in the emirate that regulates cryptos. The law protects investors and provides international standards for the virtual assets industry governance.

Per a local report, Citizens, a new school in Dubai, will accept payments from Bitcoin (BTC) and Ethereum (ETH) in a move to provide parents with flexible payment options. The school stated that the crypto inclusion would be in addition to traditional forms of payments and monthly interest-free payment options.

The crypto payments are accepted through a partnership with a digital currency platform that automatically converts them to dirhams (AED).

The school aims to entrench the Gulf nation as a global leader in digital innovation and economy. As a result, the Citizens intends to become the incubator for entrepreneurial ideas and children-led innovation. Dr. Adil Alzarooni, Founder of Citizens School, noted,

“By introducing this new payment facility, we look forward to enhancing the role of young generations in achieving the UAE’s digital economy. As more people embrace the era of digitalization, today’s children will become the entrepreneurs and investors of tomorrow.”

Dubai’s ‘Crypto Hub’ Journey

There is no doubt that the United Arab Emirates (UAE) is on the path to turning into a new crypto hub, with several crypto exchanges looking to move their base to the emirate city.

Crypto exchanges Bybit and Crypto.com are establishing their regional hub offices in Dubai, per the announcement on Monday.

📢 In an announcement with the UAE Ministry of Economy @Economyae at the World Government Summit, Bybit received in-principal approval to conduct virtual asset business & will be setting up our global HQ in Dubai!

📲 Read more here: https://t.co/HXk2dwVCCQ pic.twitter.com/0J7HQ9kjqs

— BYBIT 🦍 (@Bybit_Official) March 28, 2022

Already, Dubai hosts the presence of crypto exchanges Binance, and FTX received a license to operate in Dubai.

As a crypto hotspot, Dubai positions itself in developing robust governance and regulatory framework that is conducive to the industry.

The new crypto legislation, revealed this month, will oversee the regulation of crypto tokens, governance and licensing of cryptos, non-fungible tokens (NFTs), supervising and controlling the trading of digital assets, monitoring transactions, and more.

Use of Cryptos for Tuition

Accepting cryptocurrencies for tuition among schools and colleges are still rare and, instead, a recent phenomenon. A handful of educational institutions have announced adding cryptos to their alternate payment methods. 

For instance, the Wharton School of Business at the University of Pennsylvania has let students pay using Bitcoin, Ethereum, and The USD Coin (USDC) stablecoin for a blockchain course.

The trend started back in 2014 when King’s College became the first U.S. college to take crypto as tuition fees. Other colleges, outside the U.S., like the European School of Management and Technology in Berlin, Financia Business School in Paris, have leaped into the crypto fray.

However, schools and colleges are cautiously dipping their toes into cryptos, as few holders are skeptical of using these assets to fund their education. This is mainly because of the structure of cryptos, which are more like a stock than cash.

According to Alex Wilson, co-founder of The Giving Block, a company that helps educational institutions form structures to accept cryptos,

“It’s not practical or common to use crypto to buy things. It’s more common to donate it than it is to transact in it. Part of that is for tax reasons.”

He told Best Colleges publication that most people would hesitate to spend their crypto holdings unless there’s a financial incentive. On the other hand, stablecoins would be an “exception,” given their stable price, pegged to a fiat currency. Wilson said,

“I think stablecoins will become more common for things like tuition because that wouldn’t be a taxable event. It would just be like spending dollars.”