Saudi Arabia And United Arab Emirates Central Banks Partner for New Aber Crypto Project
The central banks of two large Arabian countries, Saudi Arabia and the United Arab Emirates (UAE), have started a new cryptocurrency trial together. According to the Saudi Arabian Monetary Authority (SAMA) and the Central Bank of the United Arab Emirates, this new blockchain initiative is set to help the countries to make financial settlements between them using the blockchain technology.
Both the central banks have emitted a joint statement in which they talked about the new program that will be trialed. According to them, the central remittance systems of the two countries may be successful and well developed, but their international remittance systems may have some need to be upgraded to achieve better results.
The two countries believe in the importance of bilateral issuance because it can be prove to be very useful for both countries.
At first, this new trial phase is set to determine whether this new tool can or cannot be used to reduce the costs of international remittance. For this, they will use a new digital currency called Aber.
The trial will be mostly focused on the technical aspects of the program at first and will be runnin on a limited function. However, if all the technical aspects are actually working as well as intended, the system will be used more widely and then the real trial will begin.
Aber will be limited to financial settlements using the distributed ledger technology, though, and only a few state companies are set to be using it at first.
Saudi Arabia and the United Arab Emirates are already planning this move for a long time now. They first announced that they would try to create a new cross-border payment system back in December 2017.
At the moment, everything is still proof of concept, so it has to first pass all the tests and the criteria of the governants in order to become a full fledged initiative.
This mirrors a report made recently by the Bank of International Settlements (BIS), which affirmed that many countries in the world are keen on creating their own cryptos.