Saudi, UAE central banks work on joint digital currency plan

Saudi, UAE central banks work on joint digital currency plan
The central banks of Saudi Arabia and the UAE announced on Sunday plans to jointly develop a new digital currency. (File/Reuters)
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Updated 29 November 2020

Saudi, UAE central banks work on joint digital currency plan

Saudi, UAE central banks work on joint digital currency plan
  • The Central Bank of the United Arab Emirates (CBUAE) and the Saudi Central Bank (SAMA) launched the ‘Aber’ project
  • The project seeks to evaluate the feasibility of issuing a digital currency for use between the two banks

DUBAI: The central banks of Saudi Arabia and the UAE announced on Sunday plans to jointly develop a new digital currency.

In a joint statement the Central Bank of the United Arab Emirates (CBUAE) and the Saudi Central Bank (SAMA) launched the ‘Aber’ project, which seeks to evaluate the feasibility of issuing a digital currency for use between the two central banks.

The aim is to develop a cross-border payment system that will reduce transfer times and costs between banks in the two Gulf states.

The banks plan to develop a technology, such as distributed ledgers, which can be used to manage digital currencies between the two central banks and banks participating in the initiative in Saudi Arabia and the UAE.

SAMA and the CBUAE “expressed their satisfaction with the achieved results, the visions shared, and the valuable lessons learned,” so far as part of the ‘Aber’ project.