UAE and Saudi banks join digital currency project

Saudi-based financial news website argaam has revealed that six Saudi and United Arab Emirates banks will participate in the digital currency project (Aber) for cross-border transactions between the two countries, according to a report it received from the UAE Central Bank (UAECB)

This is the latest news regarding the project that was announced in December 2018 when the UAECB and Saudi Arabian Monetary Authority (SAMA) said that they planned to launch a cryptocurrency to enable transactions between the two countries.

So far the six banks participating in the Aber project have not been named, but it is anticipated that the currency will be launched within the next 12 months.

The argaam article also says, “The currency’s official issuance is conditional on the outcomes of the “proof-of-concept” stage. The Saudi Arabian Monetary Authority (SAMA) and the UAECB will decide on the feasibility of the currency’s practical applications.”

The two countries are working together closely on a joint cryptocurrency development with a better understanding of the development of blockchain technology being their aim. In the UAE, the Dubai government also announced its intention to issue a state-backed digital currency pegged to the UAE’s fiat currency, the dirham, for utilities payments and it has also been a leader in promoting the adoption of technology that will make Dubai a leading ‘smart city’.