In early today, December 17, 2018, a local media outlined the statement of Saudi’s Central Bank which states that ‘they are not using digital currency yet’ and the media claiming so, is wide of the mark. In fact, they are working on a project which aimed to finished up until Q4 2019.
However, the Bank’s clarifying statement to the media unveiled that the CBUAE (Central Bank of UAE) and Saudi Arabian Monetary Authority (SAMA) is working on a joint venture. The project is still under ‘an early sate’ and it would constitute a ‘proof-of-concept (PoC)’ to begin with cross-border payments between two countries. Nevertheless, it intends to work by experimenting ‘Bitcoin’s underlying technology’.
The statement read it as follows;
“[It] will help CBUAE gain a deeper understanding of the feasibility of distributed ledger technology in this field and explore the potential opportunities and benefits of a digital currency,”
Moreover, the banks are in contract with the tech company to proceed with the implementation of the PoC which is scheduled for late 2019. Following the outcome of PoC, both countries will make use of digital currency for cross-border transactions. Speaking about the collaboration, CBUAE Governer, Al Mansouri said that;
“This is probably the first time ever we witness such cooperation in this policy front. We hope that the potential success of this initiative will foster similar collaboration in the GCC [Gulf Cooperation Council] region and globally,” Al Mansouri told attendees.
Furthermore, such cross-border payment solution is organized to employ for inter-bank transaction among two neighboring countries. Nevertheless, Mr.Mansouri continued that it will not be used for consumer payments.
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