Tuesday , March 9 2021

Saudi Arabia and the UAE will issue a common digital currency

Saudi Arabia and United Arab Emirates (UAE) announced a project this Tuesday for the issuance of a common digital currency, called "open", That will be used of limited form enters a period of tests.

The virtual currency will be introduced "in a limited number of banks of both countries" to verify its operation, as reported by the Saudi Monetary Authority (SAMA) and the Central Bank of the Emirates in a joint statement.

The two government entities They did not specify the date of launch of the digital currency, Not the volume of the initial issue or the expected duration of the trial period.

The statement said that if "technical barriers" do not occur during the testing period, they will study "economic and legal issues for use" to make local payments.

The project also plans to use "aber" as an "alternative reserve" unit which would be used to make local payments by central banks, should the "interruption for any reason" occur from the traditional system.

Saudi Arabia and the UEA asserted that the objectives of the project are to "understand and study closely" the new technologies and their viability and "determine their impact on the improvement and the reduction of the costs of remittances" # Assessment of your risks.

The statement indicated that other countries have promoted pilot projects to explore the use of digital currency, Without mentioning any in particular.

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