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.
1. The central bank-based digital currency will make cross-border financial transactions more secure and financially efficient.
2. For the implementation of Aber project, the two countries have emphasized that concentration in the initial stages will be on technical aspects.
3. In case that no technical obstacles are encountered, economic and legal requirements for future uses will be considered.
4. The use of the currency will be restricted to a limited number of banks in each state.
5. 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.
The key objective of the pilot project is studying the practical application of modern technologies and determining their impact on the reduction of remittance costs and assessment of technical risks and how to deal with them.