The use of the currency will be restricted to a limited number of banks in each state, in case that no technical obstacles are encountered, economic and legal requirements for future uses will be considered.
Tuesday 29, January 2019 BY MUZORIWA KUDAKWASHE
The Central Bank of the UAE (CBUAE) and the Saudi Arabian Monetary Authority (SAMA) have announced the launch of the common digital currency project 'Aber', which will be used in financial settlements between the two countries through blockchains and distributed ledgers technologies.
In a statement, the duo said that the project will establish an additional means for the central financial transfer systems of the two countries and enable banks to directly deal with each other in conducting financial remittances.
The joint launching of the of the digital currency by the CBUAE and SAMA follows the trend in central banks in other countries – which have already begun pilot projects to explore the dimensions of blockchains and distributed ledgers technologies applied in the circulation of digital currencies.
The two countries already have a central system for remittances and domestic transactions in place which have evolved over time and proved its feasibility, however, there are still some aspects of international remittances that need further development.
The Aldar project will also enable considering the possibility of using the system as an additional reserve system for domestic central payments settlement system in case of their disruption for any reason, according to local newswire, WAM.