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Saudi Arabia and UAE Launches a Separate Cryptocurrency For Banks to Facilitate Cross Border Payments

UAE and Saudi Arabia are all set to be the new crypto-hub in the middle east by launching their own Saudi-Emirati Pilot cryptocurrency.

According to Emirates News Agency, the Saudi-Emirati cryptocurrency is one of the seven initiatives that will be implemented by both countries.

The meeting of the Executive Committee of Saudi-Emirati Coordination Council was held in Dubai with UAE’s Minister of Cabinet Affairs and The Future, Mohammad bin Abdullah Al Gergawi and Saudi Arabia’s Minister of Economy and Planning, Mohammed bin Mazyad Altwaijri leading this collaboration.

According to UAE’s official news agency:

“The first of its kind joint pilot cryptocurrency was launched during the meeting. The cross-border digital currency will be strictly targeted for banks at an experimental phase with the aim of better understanding the implications of Blockchain technology and facilitating cross-border payments.”

The Saudi-Emirati cryptocurrency will serve as an experiment to understand blockchain technology and allow cross-border payments across the two countries.

“The cross-border digital currency will be strictly targeted for banks at an experimental phase with the aim of better understanding the implications of Blockchain technology and facilitating cross-border payments. The virtual currency relies on the use of a distributed database between the central banks and the participating banks from both sides. It seeks to safeguard customer interests, set technology standards and assess cybersecurity risks. The project will also determine the impact of a central currency on monetary policies.”

It seems like the Cryptocurrency will only be accessible by the banks while the central and commercial banks would be able to run nodes. There is little detail given about the technicalities and nature of Blockchain involved but it seems to be centralized.

Blockmanity’s Take

The UAE and Saudi Arabia combined have the 2nd largest wealth sovereign fund. These 2 oil-rich countries will surely lead to worldwide adoption for crypto.

Image Source: WAM

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