The project is to be implemented during next 12 months
On February 5, 2019, leading Saudi Arabian financial news portal Argaam has revealed that six commercial banks from Saudi Arabia and the United Arab Emirates have joined a virtual currency project.
The goal of of the interbank project, dubbed Aber, is to use digital currency for financing transactions between the UAE and Saudi Arabia. The project started in December 2018, when the UAE and Saudi Arabia announced they planned to use cryptocurrency for cross-border transactions.
Today’s news reports that six unnamed commercial banks intend to join the project, which must be put into effect during next 12 months. The article also notes:
“The currency’s official issuance is conditional on the outcomes of the “proof-of-concept” stage. The Saudi Arabian Monetary Authority (SAMA) and the the UAE central bank (UAECB) will decide on the feasibility of the currency’s practical applications.”
Earlier, in January 2019, Saudi Arabia and the UAE announced that the two countries had decided to cooperate on joint digital currency development in order to better realize the impact and opportunities of blockchain technology use.
Author: Helen Darkhouse