Cryptocurrencies and blockchain technology is beginning to creep into real-world business activities.
Ripple has already collaborated with over 200 financial institutions, Deloitte & # 39; s Global blockchain survey 2018 shows that 95% of the companies interviewed are investing in blockchain technology and the list goes on.
The latest positive news on the adoption of the blockchain comes from Saudi Arabia and the United Arab Emirates (UAE), as their banks are adopting blockchain technology and launching a cryptocurrency.
United Arab Emirates alliance
According to Emirates News Agency, the Executive Committee of the United Arab Emirates Coordinating Council discussed 7 initiatives that will help to materialize their joint vision of economic, social and military integration.
The initiatives will be implemented during 2019.
The committee is made up of 16 members from both the UAE and Saudi Arabia. These members represent one of the strongest economic alliances in the world, as the combined sovereign wealth funds of the two countries are the second largest in the world.
Launch of an interbank cryptocurrency
Regarding their strategic initiative for bilateral integration in the services and financial markets, the UAE alliance decided to experiment with blockchain technology in their financial transactions between the two countries.
During their most recent meeting, the 2 countries launched a common pilot cryptocurrency to facilitate cross-border payments between banks. Initially, cryptocurrency will be rigorously used experimentally to understand the implications of blockchain technology.
No details were provided on what is behind the blockchain technology on which the cryptocurrency operates. The press release found that the digital currency is based on the use of a database distributed between central banks and participating banks in both countries.
Adding to the above, the press release found what the alliance hopes to achieve with its experimental cryptocurrency project:
Try to safeguard customer interests, set technology standards, and assess cyber security risks. The project will also determine the impact of a central currency on monetary policies.
Can the UAE cryptocurrency use ripple technology?
Not much else is publicly known about this joint blockchain initiative, but there is room for some speculation about the details of the project.
For example, it is more than likely that the cryptocurrency blockchain is private so that the general public can not view transactional activity between the two nations. Because the blockchain is centralized, it is likely that centralized authorities will be able to reverse transactions if necessary.
Furthermore, it could be assumed that the alliance between Saudi Arabia and the UAE is not building its own cryptocurrency and blockchain, but rather adopting an existing network that has already been tested, tested and proven to work.
The only crypt that the alliance seems likely to adopt and experiment Ripple which is designed specifically to facilitate cross-border payments between banks. Furthermore, Ripple's blockchain technology, and in some cases its cryptocurrency (XRP), has already been tested and implemented in numerous financial institutions.
One of Ripple's most important additions is with one of the largest Islamic banks in the world, Kuwait Finance House (KFH). While Kuwait and KFH are not part of the UAE or Saudi Arabia, it is a border country for both nations.
It would not be surprising to learn it Ripple's blockchain technology it could be behind the United Arab Emirates cryptocurrency project. After all, Ripple is by far the largest cryptocurrency project in the banking sector, with most of the implementations, connections and networks with banks around the world.
Right now, if Ripple's blockchain technology and cryptocurrency are involved in the United Arab Emirates cryptocurrency initiative, the issue is purely speculative. We will have to wait and see how their project takes place during 2019.
Do you think the Saudi-Emirati alliance is using Ripple block technology and cryptocurrency? Or did they develop their cryptocurrency? Let us know what you think in the comments section below.