Digital currency is becoming quite popular these days. It is no longer an investment just for the west. It’s now a cross-border business. Today, Saudi Arabia and UAE have come together to launch a common digital currency, Aber, for the two countries.

A report published by Yogita Khatri on Coin Desk shows that the currency is currently at its trial stage, during which it will go through technical testing.

Saudi Arabia, UAE Aim to Cut Payments Costs With Common Digital Currency

While the central remittance systems in both countries have “evolved overtime and proved their feasibility,” international remittances have need for improvement, the central banks said.

The proof-of-concept trial will examine if the nations can ultimately reduce remittance costs using a common digital currency called Aber.  The study will also look at whether the blockchain system can act as an “additional reserve” for domestic payments.

Read Full Article Here

As of this writing, the new currency is limited to just a few banks, until after the two countries are sure that the currency won’t be subject to technicalities.

According to Dania Saadi from The National, the launch of the currency will enable both small and medium-sized businesses in two countries to set up what’s known as a common market civilization.

UAE-Saudi digital currency will be restricted to few banks, central bank says

A proposed UAE-Saudi digital currency will be restricted to a few banks in each country for executing financial settlements between the two, the Central Bank of the UAE said on Tuesday. The currency project, called Aber, is part of a seven-point co-operation plan agreed upon during the meeting of the Executive Committee of the Saudi-Emirati Co-ordination Council earlier this month.

“The use of the currency will be restricted to a limited number of banks in each state,” the central bank said. “In case that no technical obstacles are encountered, economic and legal requirements for future uses will be considered.”‏

Read Full Article Here

However, the Central Bank hasn’t stated the dates during which this project, which is based on Blockchain technology, will be launched.

According to Yessi Bello Perez from The Next Web, part of the reason for the introduction of Aber is to determine if the technology can reduce remittance cost.

Saudi Arabia and UAE confirm joint cryptocurrency trial

According to the statement, the project will also explore whether blockchain-based financial settlements between the two nations are viable. It’ll also seek to find out if a blockchain system can serve as an additional reserve for domestic payments.

The project will initially focus on the technicalities associated with the technology and the use of Aber will be restricted to a set number of banks in each country.

Read Full Article Here

If SAMA and the Central Bank of UAE do not experience technicalities, they will schedule a date for the official launch of the project.

Conclusion

According to reports on digital currency, SAMA and the Central Bank of UAE share a common interest in launching and running pilot projects. So the use of this new technology is expected to be quite helpful for both countries.