Saudi Arabia, UAE to finalize cryptocurrency pilot ops by year-end: SAMA

Saudi Arabia and the UAE will finalize the pilot operations of the digital currency for cross-border bank transactions by year-end, Al-Eqtisadiah has reported, citing Hisham Al Hogail, Deputy Governor for Banking Operations at Saudi Arabian Monetary Authority (SAMA).

The pilot operations will likely focus on the technical aspects. Meanwhile, legal and economic aspects will be examined at a later stage.

“SAMA will expand the cryptocurrency usage to other countries following UAE,” added Al Hogail.

In January, SAMA and the United Arab Emirates Central Bank (UAECB) 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.