THE CENTRAL BANKS OF THE ARAB EMIRATES AND SAUDI ARABIA ARE EXPLORING THE POSSIBILITY OF INTRODUCING A DIGITAL CURRENCY

The Central banks of the two neighboring countries, the UAE and Saudi Arabia, are jointly exploring the possibility of using a single cryptocurrency for cross-border payments.

The exact date of release of the currency is not known, but it is clear that it will not be used in retail, and is intended exclusively for financial institutions.

For the first time, these plans became known at the end of 2017. Now Al-Mansouri recalled the work on a single digital currency at a meeting of the banking industry “high level”. He said:

“This may be the first time in history that two Central banks from different countries are interacting on this issue, and we hope that such a decision will increase the degree of economic cooperation in the region.”

Probably, the authorities of the two Arab countries are considering the use of cryptocurrency technology for interstate payments and trade operations. This approach to the use of cryptocurrencies is supported by the authorities of different countries.

For example, recently Central banks of Singapore, Great Britain and Canada even issued a special report in which they supported the issue of digital currencies for international payments.

The use of cryptocurrencies in international trade has also been approved by the World Trade Organization (WTO).