United Arab Emirates and Saudi Arabia process cross-border payments on blockchain – FinTech Futures


The United Arab Emirates and Saudi Arabia have launched a proof of concept (PoC) to test the blockchain to help cross-border payments between the two countries.

Ripple involved?

Ripple involved?

The Central Bank of the United Arab Emirates (CBUAE) and the Monetary Authority of Saudi Arabia (SAMA) are behind the new initiative.

It is interesting to note that CBUAE explains: "Some media have incorrectly reported that the United Arab Emirates and Saudi Arabia have started using digital currency for cross-border settlements that will be supported by the legal currencies of the two nations."

Look at the bright side. At least one regulator reads the fintech news.

In any case, it is clear and CBUAE tells the world that the PoC is still at an early stage and will help to gain a "deeper understanding of the feasibility" of distributed ledger technology (DLP) in this field and "explore potential opportunities and benefits of a digital currency ".

CBUAE and SAMA have selected a technology company without a name (perhaps Ripple? See below) to support the implementation of this PoC, which should be completed in the last quarter of 2019.

The project started with the initial knowledge transfer sessions and is currently collecting technical and business requirements.

Once completed, the result of this PoC "will determine if a digital currency could be introduced into normal market transactions between the two countries".

In February, Ripple signed an agreement with SAMA to support the nation's banks in a blockchain-fueled payment pilot.

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