Saudi Arabian Monetary Agency (SAMA) and the Central Bank of the United Arab Emirates (UAECB) launched the joint Aber digital currency, designed to serve as a means of calculation in cross-border payments between the two countries, – this was reported by the national press on January 29th.
Preparations for the launch will begin with an experimental stage at which both central banks intend to study the use of the blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details in issuing a common digital currency for cross-border payments, – from the statement of the Central Bank of Saudi Arabia.
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Objective of the project
The reason for the joint launch of the project was the fact that each country has centralized money transfer systems and internal transactions that have proven themselves to be profitable. However, the statement says that certain aspects of the international money transfer system need further development.
Banks explained that the issue of currency is within the framework of a concept aimed at: "Studying aspects of modern technologies and their implementation through practical application and determining their impact on improving and reducing the costs of remittances, as well as assessing technical risks and ways to eliminate them."
Characteristics and features
SAMA and UAECB agreed that at the initial stage of project implementation, developers will focus on technical aspects and introduce some restrictions.
It is reported that a joint statement by the banks states that the use of Aber will be limited to financial calculations using distributed ledger technology (DLT) "on a trial basis and for use by a limited number of banks in two countries".
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The release of Aber cryptocurrency, is part of the cooperation between the UAE and the Kingdom of Saudi Arabia, agreed at a meeting of the Executive Committee of the Saudi-Emirates Coordination Council on January 17.
As reported, the UAE also intends to join the list of leading destinations for companies dealing with the blockchain in 2019 by creating a new pro-crypto-legal framework.
Editor: Pereyidenko Ihor