Saudi central bank hires advisers for digital currencies: report

Saudi Arabia has hired a consultancy to advise on the issuance of a digital currency to be used in cross-border transactions between Saudi and UAE banks, Al-Eqtisadiah newspaper reported, citing Ahmed Al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA).

The new digital currency, which will be government-backed, has no speculative nature and risks involved. It will be rolled out on a trial basis for six months, the central bank's governor added.

In December last year, UAE central bank governor Mubarak Al Mansouri said the UAE and Saudi Arabia were considering issuance of a tradable digital currency to facilitate cross-border transactions and payments

A joint venture was also being studied with SAMA to facilitate use of blockchain technology in cross-border deals between both countries, Al Mansouri said at the time.