UAE Central Bank, Saudi Arabia to develop joint cryptocurrency for interbank transactions


The United Arab Emirates Central Bank (UAE) is collaborating with the Saudi Monetary Authority (SAMA) to issue a cryptocurrency accepted in cross-border transactions between the two countries. GulfNews press release in Dubai has reported this collaboration on December 12th.

Mubarak Rashed Al Mansouri, the governor of the UAE central bank, said during a meeting on global banking standards and regulations for the Arab region that:

"This is probably the first time ever to witness the cooperation of the monetary authorities of different countries on this subject and we hope that this result will foster similar collaboration in our region".

However, Al Mansouri also stressed that this "is just a studio" and that "they did not go deeper". The digital currency under development should only be used among banks. According to Al Mansouri, this would be "much more efficient".

Al Mansouri added that the recent development of financial technology brings challenges and opportunities. According to him, the key is the regulators that better understand the risks and the best ways to mitigate them.

As Cointelegraph reported at the beginning of October, a digital currency supported by the Dubai government will get its payment system. As a result, local consumers will be able to use digital currency to pay for goods and services.

The Abu Dhabi global market has recently conducted a test of a Blockchain-based Know Your Customer (KYC) system. Reportedly, the first phase of the pilot project in the international free zone in the capital of the United Arab Emirates was successful.

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