UAE Central Bank plans to make Interbank Transactions to Saudi Arabia using a new cryptocurrency

The central bank of the UAE has announced about the joint collaboration with the Saudi Arabian Monetary Authority (SAMA) aimed at issuing a new cryptocoin that would be created for transactions between the banks of these states. This information was revealed by GulfNews, a media located in Dubai, on December 12. This information was confirmed […]

By - December 19, 2018
UAE Saudi Central Banks

The central bank of the UAE has announced about the joint collaboration with the Saudi Arabian Monetary Authority (SAMA) aimed at issuing a new cryptocoin that would be created for transactions between the banks of these states. This information was revealed by GulfNews, a media located in Dubai, on December 12.

This information was confirmed by Mubarak Rashed Al Mansouri, the UAE central bank governor, who also commented this situation at the meeting devoted to the development of standards and regulations in the global banking system for the Arab region.

He admitted that this joint cooperation is the first one in the world’s history, because monetary authorities of 2 countries work on the following project. He also expressed a hope that This example will contribute to such type of collaboration in Asia.

However, the governor also told that now the project is at the stage of study and none serious actions were made. The cryptocoin these countries are working on is developed especially for interbank transactions to make this process more efficient.

According to Al Mansouri, blockchain technology has two sides making companies face different challenges as well as receive more opportunities. He also puts much responsibility on regulators as they have a better understanding of the possible risks and ways how to prevent them.

Dubai government is developing another digital currency that is going to have its own payment system. It means that token owners will get a possibility to pay with this cryptocoin in the stores too.

According to KYC system test conducted by the Abu Dhabi Global Market, the initial stage of this pilot project working in the international free zone of Abu Dhabi has been characterized by success.

Leave a Comment