UAE AND SAUDI ARABIA JOINS FORCES TO CREATE A CROSS BORDER CRYPTOCURRENCY

BTC/USD $ 26712.9

ETH/USD $ 1796.60

SHIB/USD $ 0.00000866

WINR/USD $ 0.00003100

DEFT/USD $ 0.00002080

FWC/USD $ 0.00000000008000

SHIB/USD $ 0.00000866

WINR/USD $ 0.00003100

DEFT/USD $ 0.00002080

FWC/USD $ 0.00000000008000

FDC/USD $ 0.00000021

YETI/USD $ 0.003856

SMR/USD $ 0.06492

UAE AND SAUDI ARABIA JOINS FORCES TO CREATE A CROSS BORDER CRYPTOCURRENCY

news@eBitcoinics.com 13 Dec, 2018 news.eBitcoinics.com Views: 407

The central bank of United Arab Emirates (UAE) and the Saudi Arabian Monetary Authority (SAMA) have come together to issue a new digital currency that can swiftly process cross-border transactions between the two countries.

GufNews, a Dubai-based media outlet reported earlier in the day, December 12, about this collaboration. The media outlet also quotes UAE central bank governor Mubarak Rashed Al Mansouri talking about the tuning of the regulatory, supervisory, and global banking standards in the Arab region.

Al Mansouri said:

“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.”

The governor of UAE’s central bank also said that they are currently educating themselves on the idea of developing a digital currency between Saudi Arabia and UAE. “It’s just a study between UAE and Saudi [Arabia] and have not gone deeper into it. We have not put a framework when the study will be completed and who will be involved from both parties,” said Al Mansouri.

Addressing the Recent Challenges In the FinTech Space

Al Mansouri has made it clear that the new digital currency will only be available for central banks and other commercial banks, and not for retail customers. The governor says that the recent shifts in the global FinTech market presents some unique challenges as well as opportunities.

The regulatory bodies associated with both the central banks will be conducting a thorough research at their end to understand the risks involved and take successive measures to effectively mitigate them.

Al Mansouri said:

“At the central bank of the UAE, we started developing regulations in this regard in 2016 in order to safeguard the financial system and protect consumers, this project is at a final stage.”

In a separate statement, Central Bank of UAE said: “CBUAE and Sama intend to execute a joint crypto-currency and Distributed Ledger Proof-of-Concept (PoC). The PoC’s design mainly focuses on the transfer of ownership of a central bank asset (crypto-currency) among participants.”

IMF Backs the Idea of Central Bank Digital Currency

While speaking at the FinTech conference in Singapore last month, IMF chief Christine Lagarde backed the idea of banks issuing their own central bank digital currency. She emphasized that the financial scenario about money is changing across the globe and banks should quickly adapt to it.

Lagarde said:

"I believe we should consider the possibility to issue digital currency. There may be a role for the state to supply money to the digital economy.” She further added: “Various central banks around the world are seriously considering these ideas. While the case for digital currency is not universal, we should investigate it further, seriously, carefully, and creatively.”

Share with :

All Comments (0)

No comment yet

Please login to leave a comment. Click here to Login.

UAE AND SAUDI ARABIA JOINS FORCES TO CREATE A CROSS BORDER CRYPTOCURRENCY

All Comments (0)

Quick Links

Use Our System

Our Blockchain Services

About Us

Get In Touch