Saudi Arabia and UAE confirm joint cryptocurrency trial

Marco Green
January 31, 2019

The Saudi Arabian Monetary Authority (SAMA) and the United Arab Emirates Central Bank (UAECB) have announced the details of their joint digital currency initiative.

In addition, the banks will also look into the possibility of this system to serve as "an additional reserve system for domestic central payments settlement system".

The digital currency is backed by fiat currencies of the two nations, he said.

The central banks of the UAE and Saudi Arabia have revealed further details about a joint digital currency project, plans for which were first unveiled past year.

Banks in the two countries have reportedly begun the pilot projects that aim to test the viability of Aber.

The two countries chose to launch a joint project, since each has centralized money transfer and internal transaction systems that have proven to be profitable. According to them, the central remittance systems of the two countries may be successful and well developed, but their global remittance systems may have some need to be upgraded to achieve better results.

"Furthermore, it will establish an additional means for the central financial transfer systems of the two countries and enable banks to directly deal with each other in conducting financial remittances", SAMA said in a statement. For this, they will use a new digital currency called Aber.

According to the statement, UAECB and SAMA hope that their pilot projects will benefit everyone locally and internationally. Therefore, the two countries undertook the experiment of issuing a common digital currency to be used across borders for transfers. If no technical barriers are encountered, economic and legal requirements for future uses are taken into account.

SAMA and UAECB agreed that at the initial stage of project implementation they will focus on technical aspects.

Other reports by Click Lancashire

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