Banks in Saudi Arabia and the United Arab Emirates (UAE) have indicated interest in an ongoing cross-border digital currency transaction project to facilitate transactions between both countries.
According to a report from Saudi Arabian financial news outlet, Argaam on Feb 5, the project dubbed ‘Aber,’ would see six banks in the UAE and Saudi Arabia participate in the project for faster settlements.
The project which is currently at the “proof-of-concept” stage would be implemented over 12 months for the participating banks. After this period, the project would be further accessed to determine the success and failure recorded within the scheduled time frame.
“The currency’s official issuance is conditional on the outcomes of the “proof-of-concept” stage. The Saudi Arabian Monetary Authority (SAMA) and the UAECB will decide on the feasibility of the currency’s practical applications,” the report further explains.
Rapid change in the fintech
News about the development of a cross-border settlement cryptocurrency between the countries came up last year.
At the time, the Governor of the UAE Central Bank (UAECB), Mubarak Rashed Al Mansouri, stated that the rapid development in the financial technology sector has brought about challenges and opportunities.
Al Mansouri further stated that both countries have to arm themselves with the necessary tools to address any challenge or opportunities that will arise in the long run, hence the creation of a joint cryptocurrency project.
During the announcement, the project was still considered a “study” but, analysts were further instructed to carry out an in-depth study on the pros and cons of embarking on the development of a blockchain-based settlement for financial institutions.
As Coinfomania reported back in January, Dubai’s residents were thrilled with the introduction of emcash – a cryptocurrency that would see the country’s populace pay for goods and services using the emcash token.