The Saudi Arabian Monetary Authority (SAMA) and the United Arab Emirates Central Bank (UAECB) have launched Aber, a joint digital currency project to facilitate trans-border settlement between the two countries.
Under a proof-of-concept framework, both central banks aim to explore the use of Blockchain and Distributed Ledgers technologies in issuing a common digital currency for use across borders to carry out remittances, the Saudi central bank said in a statement.
The two countries decided to launch the project jointly rather than independently as both have central systems for remittances and domestic transactions which have evolved overtime and proved their feasibility.
However, there are still some aspects of international remittances that need further development, the statement said.
SAMA and UAECB have agreed that the initial implementation will focus on the technical aspects. The use of the currency will be restricted to a limited number of banks in each country.
In case of no technical obstacles encountered, economic and legal requirements for future use will be considered, it added.