Something very significant has just happened to Ripple (CRYPTO:XRP).

Dubai effectively gave the green light for Ripple to be used as a payment mechanism for companies within the Dubai International Financial Centre.

This is kind of a big deal.

It means Ripple can be used as a government-sanctioned mechanism of exchange for real-time cross border payments.

And in an expat country like Dubai, cross-border payments are big business.

In 2021, the value of remittances in the UAE was AUD$63 billion.

This is core business for Ripple, which was created as a bridge between two fiat currencies to facilitate faster and more efficient cross-border payments.

Ripple has been in limbo for several years. While it had built the tech, it was embroiled in a court case with the SEC, and was operating in a regulatory grey area in most jurisdictions around the world.

Dubai embracing crypto

The decision by authorities in Dubai follows a more lenient approach to crypto regulation in Hong Kong, which has seen an influx of crypto capital in recent months.

The United Arab Emirates, with its high quality of life and lack of personal income tax has all the makings of a crypto hub.

According to the CEO of the DIFC Innovation Hub, while Hong Kong and Singapore are competing for the top spot in shaping the future of fintech and Web3, Dubai is cementing its position as a prominent global hub.

So what does all this mean for the future of crypto?

Well, when three of the world’s largest financial capitals swing open the door to crypto, people tend to walk through it.