The central banks of the United Arab Emirates (UAE) and Saudi Arabia have launched a common digital currency called ‘Aber’, which will be used in financial settlements between the two countries through Blockchains and Distributed Ledgers technologies.
The UAE central bank said in a statement that it will establish an additional means for the central financial transfer systems of the two countries and enable banks to directly deal with each other in conducting financial remittances.
• For the implementation of Aber project, the two countries have emphasised that concentration in the initial stages will be on technical aspects.
• The use of the currency will be restricted to a limited number of banks in each state.
• In case that no technical obstacles are encountered, economic and legal requirements for future uses will be considered.
• The central bank-based digital currency will make cross-border financial transactions more secure and financially efficient.
• SAMA and the Central Bank of UAE share the same desire to launch pilot projects in the use of Blockchain and Distributed Ledgers technologies to identify them and learn how to benefit from them.
Cooperation between UAE, Saudi Arabia
The UAE’s central bank and SAMA hope that their pilot projects will benefit everyone locally and internationally.
Based on this desire, the two countries do not only aspire to be the forerunners in the application of modern technologies, but also in their adaptation, development and delivery to the world.
Hence, the two countries embarked on carrying out the experiment of issuing a common digital currency for use across borders to carry out remittances.