The Saudi Arabian Monetary Authority (SAMA) and the Central Bank of the UAE have announced a partnership to launch a new blockchain-based digital currency called Aber to facilitated financial settlements between both nations.
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This will be the first time monetary authorities of two countries cooperate to utilize blockchain technology.
In a press release, both central banks stated while remittance systems between the two countries has “evolved overtime and proved their feasibility,” international remittances have to be improved.
The beginning trial stages of the project will focus on testing the technical capabilities of the blockchain. Later, the nations will decide whether the blockchain can act as an “additional reserve” for domestic payments.
The new developments come over a year after reports came out that Saudi Arabia was planning to trial a new cryptocurrency for cross-border payments.