Saudi Arabia and UAE to Launch the Joint Cryptocurrency Project


Saudi Arabia and United Arab Emirates (UAE) have agreed on a launch of seven joint initiatives, Emirates News Agency reports.

The initiatives were announced following the end of the first meeting of the Executive Committee of the Saudi-Emirati Coordination Council, which was held in Abu Dhabi. Sixteen senior officials from both countries took part in the meeting.

The mandate of the committee is to ensure the implementation of the joint initiatives listed below.

The seven initiatives include Saudi-Emirati Pilot cryptocurrency, civil air traffic, support of small and medium-sized enterprises, projects to support children, supply security system, common market for civil aviation and enhancement of the travel experience.

In regards to the pilot cryptocurrency project, it focuses on the cross-border payments and transactions. The official statement notes that the project will be “strictly targeted for banks at an experimental phase with the aim of better understanding of the implications of Blockchain technology and facilitating cross-border payments.”

In addition, the project will seek to see the impact of the central currency on the monetary policy of both countries as well as assess cybersecurity risks.

This news has not come as a surprise as it was announced in December last year that above-mentioned countries are working on the project targeting cross-border transactions.

“This is probably the first time ever that witnesses the cooperation of monetary authorities from different countries on this topic and we hope that this achievement will foster similar collaboration in our region,” said Mubarak Rashed Al Mansouri, the governor of the UAE’s central bank.

Obviously, the talks between the two countries have gone well as the pilot project will be launched in the near future.

Near the end of the last year, the UAE announced new legal framework regulation coin offerings, while also hinting at possible development of legislation aimed at regulating the work of crypto exchanges, which would place the country among the leading destinations for crypto and blockchain business.