KSA, UAE to issue common digital currency

CAIRO - 31 January 2019: KSA and UAE launched a new project called Aber to issue a common digital currency aiming at decreasing the exchange rate, according to Saudi Arabia press agency SPA.

Such a step boosts mutual trade and development of the economies of the two countries.

The Saudi Agency Press reported that the Saudi Arabia Monetary Authority (SAMA) and the UAE Central Bank issued a joint statement, explaining the aims of issuing a common digital currency to be used in both Saudi Arabia and the UAE.

According to the published data, the aim of offering the common digital currency is to have a new additional mean for the central exchange systems between both countries, and paving the way for banks to deal directly with each others.

Other reasons for this decision are exploring experimental projects conducted by some central banks which aim to go deeper beyond the dimensions of block chains and distributed ledger used in digital currency.

It added that UAE Central Monterey Authority had the same tendency to apply this new strategy in Emirates. Hence, instead of issuing the same project independently; the two projects will be integrated.

The two countries have central systems that deal with banking transference and national operations developed over time; yet still some aspect of international transference need to be up-dated where issuing common digital currency will serve this aim.

Moreover, it could be an additional system for cash payment settlements system; incase it halts for any reasons.

Saudi Arabia Monetary Authority and Emirates Central Bank seek to get benefits of its experimental projects nationally and internationally. The two countries aim not only to apply this modern technology but also to up-date and develop it.

Regarding the applied mechanism; statement stated that the main focus will round about quality methods and limiting it for certain banks in every country. During experiment; economical aspects and legal acquirements will be conducted.

Executive Committee of the Saudi-UAE Coordination Council held its first meeting in the Emirati capital Abu Dhabi on January 17 where prominent initiatives were announced within the frame of “Khalwa Al Azm” strategy; to achieve mutual integral vision and subjects of mutual concerns.