UAE, Saudi Central Banks Working On a Cross-Border Cryptocurrency

The central banks in the United Arab Emirates and Saudi Arabia are works on a  cryptocurrency to facilitate cross-border transactions between the two countries.

Telling on the sidelines of the Arab Monetary Fund meeting, Mubarak Rashid Al Mansouri, UAE Central Bank Governor has disclosed some details of a joint project between the institution and the Saudi Arabian Monetary Authority (Sama) to form a blockchain-based cryptocurrency to cross-border power transactions within the two countries.

Mansouri said that “This is the first time the monetary authorities of two countries cooperation to use blockchain technology,” According to the Gulf news, both monetary institutions have taken many efforts to study to study ‘the concept of developing a digital currency between the UAE and Saudi Arabia,’

The report also shows the Central Bank of the UAE as stating: CBUAE and Sama intend to execute a joint crypto-currency and Distributed Ledger Proof-of-Concept (PoC). The PoC’s design mainly focuses on the transfer of ownership of a central bank asset (crypto-currency) among participants.

cryptocurrency of central banks will not be given to the retail consumers. Rather, the digital token will be provided and exchanged between the two central monetary authorities as well as some commercial banks in both countries.

Then he talked about developments in drafting regulations for the FinTech sector, specifically crowdfunding platforms. The central bank official referred problems in drafting regulations without curbing innovation in new financial technologies.

Al-Mansouri said Crowdfunding platforms and blockchain technologies are a case in point,” crowdfunding platforms had received worldwide attention and growth within few years. At the central bank of the UAE, begun developing regulations in this regard in the year 2016 to safeguard the financial system and protect consumers, this project is at a final stage”.

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