Media ININ Economy We Trust
Media In Abu Dhabi – 29 January 2019 /
The United Arab Emirates Central Bank and the Saudi Arabian Monetary Agency (SAMA) issued a joint statement to clarify the details of the first phase of the joint digital currency between the UAE and Saudi Arabia.
SAMA and the Central Bank of the UAE said in a statement that the aim of launching a “transient” project to issue a digital currency used between Saudi Arabia and the UAE in financial settlements through the techniques of block chains and distributed records as part of proving the concept of “proof-of-concept” • To understand and study the dimensions and feasibility of new technologies closely through actual application and to know their impact on the improvement and reduction of the costs of conversion operations and assessment of technical risks and how to deal with them, as well as qualification of cadres that will deal with future technologies, and understanding the requirements of issuing a digital currency between two countries, Add to find a way Additional systems central transfers in both countries, and allow banks to deal with each other directly for the implementation of financial transfers.
The report said that central banks in some countries have begun pilot projects to explore the dimensions of the techniques of cluster chains and distributed records used in the circulation of digital currencies; the Monetary Authority and the Central Bank of Emirates had the same desire to experience these Techniques to identify them and how to benefit from them.
He attributed the agreement to launch the project jointly rather than independently in each country that the two countries have centralized systems to deal with remittances and local operations have evolved over time and proved useful, while there are some aspects of international remittances need to be further developed may prove after the study that the use of Digital currency can contribute to support this development.
This project will also allow the possibility of using the system as an additional reserve system for central systems to settle local payments when they are disrupted for any reason.
The statement pointed out that the Monetary Authority and the Central Bank of UAE wish to return their pilot projects to benefit everyone locally and internationally. Therefore, the desire of the two countries to be not only two in the application of modern technologies but also in adapting, developing and delivering to the world, Digital and cross-border use to implement remittances.
And on the mechanism agreed upon in the implementation of the project “transit” between the Monetary Authority and the Central Bank of the UAE. The statement confirmed that the focus during the first stages will be on the technical aspects, and will be limited to a limited number of banks in each country ..
Adding that “during the experiment, and if it is found that there are no technical obstacles, will be studied the economic aspects and legal requirements for future uses.”
The Executive Committee of the Saudi-Saudi Coordinating Council held its first meeting in the UAE capital on January 17 and announced the priority initiatives prepared for the launch within the framework of a strategy of determination to implement the common vision of integration and intensify bilateral cooperation on topics of mutual concern. Between the two countries. The most prominent of these initiatives in the field of services and financial markets, the launch of the project “transient” to issue electronic currency electronically trial and restricted trading between a number of banks in the two countries.
