Cryptocurrency Under Consideration By UAE, Saudis For Cross-Border Transactions

Blockchain, News | December 14, 2017 By:

The central bank of the United Arab Emirates is reportedly working with the Saudi Arabian Monetary Authority to issue a cryptocurrency for cross-border transactions.

In a speech to a regional financial conference, UAE central bank governor Mubarak Rashed al-Mansouri said the cryptocurrency would be based on blockchain. It would be used between banks and not by individuals consumers, and would make transactions more efficient.

“It is digitization of what we do already between central banks and banks,” he said.

The two cental banks also discussed banking supervisory priorities and challenges for financial stability in the Arab region, as well as many related relevant topics and issues, such as financial technology (FinTech) and cyber-risk regulation, as well as current issues in financial market infrastructure, resilience, recovery and resolution of central counter-parties.

The two central banks have in the past expressed skepticism about cryptocurrency such as bitcoin. In October, the central bank of UAE warned the public against using cryptocurrencies such as bitcoin, calling it unofficial and lacking sufficient supervision. In July, the Arab Monetary Fund (AMF) warned against trading bitcoin because it was outside the bank’s regulatory reach.