UAE, Saudi Arabia to introduce joint digital currency
The collaboration is in its initial stage
The UAE and Kingdom of Saudi Arabia are reportedly joining forces to introduce a digital currency that will allow for cross border transactions.
The UAE Central Bank governor Mubarak Rashed Al Mansouri announced that the digital currency will based on blockchain and the transactions will be maintained by a network of computers via the internet.
The collaboration is in its initial stage, as Al Mansouri stated "it's just a study between UAE and Saudi [Arabia] and we have not gone deeper into it." He also revealed that there is no specific time frame for the project.
However Al Mansouri stressed that whilst the move is in its initial stage, both banks want to understand the technology better. Plus the currency would be for the banks only, not individuals. "It is digitisation of what we do already between central banks and banks," he said.
Both central banks have previously shown concern about digital currencies, as the UAE central bank cited it does not recognise bitcoin as an official currency.