Saudi Arabia and UAE join hands for the Creation of a Pilot Cryptocurrency

According to reports from Emirate News Agency on Jan. 19, two Middle East countries – Saudi Arabia and the United Arab Emirates have come to an agreement for the creation of a cryptocurrency.

A meeting was held in Abu Dhabi with all 16 members of the Executive Committee of the Saudi-Emirati Coordination Council where they discussed on the joint initiatives in the Strategy of Resolve.

The strategy involves a joint vision of economic, social and military integration between the two countries. It is comprised of seven initiatives, notably financial youth training and development of a cross-border digital currency.

One of the initiatives, as already mentioned, is the creation of a pilot cryptocurrency. It relies on the use of a distributed database between the banks from both sides. This is done “to safeguard customer interests, set technology standards and assess cybersecurity risks.” It will also examine the impact of a central currency on monetary policies.

Read More: Blockchain and Banking: The Irony

The report stated that the cryptocurrency will be targeted for banks during the experimental phase so as to better understand the blockchain technology and facilitate cross-border payments.

The gulf has already been known to be very active in the Crypto space. From UAE itself, Dubai has announced that they will register their very first official crypto exchange. Last month, the customs authorities in Saudi Arabia has completed their pilot scheme which will link its cross-border trade platform FASAH with IBM and Maersk’s TradeLens blockchain platform.

The Saudi-Emirati alliance have a very strong hold in terms of market capitalization and oil stock. They own a total of around 24.3 percent of the world’s total oil stock. According to World Bank data, they rank 8th in terms of exports of goods and services.

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