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UAE, Saudi Arabia Launch Cryptocurrency Pilot for Cross-Border Payments

According to UAE’s official news agency, Emirates News Agency, the Saudi-Emirati cryptocurrency is one of the seven initiatives that will be implemented in both countries.

Saudi-Emirati Cryptocurrency Restricted to Banks Only

Formed in 2016, the Executive Committee of the Saudi-Emirati Coordination Council met for the first time in UAE on January 19. The Council announced that the new cryptocurrency will be used for cross border payments between central and local banks.

The cryptocurrency will serve as an experiment to understand blockchain technology and allow seamless transactions across the two countries.

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An excerpt from the announcement stops short of revealing the blockchain deployed, explaining:

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.

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