UAE, Saudi Arabia To Issue Cross-Border Cryptocurrency

Blockchain, News | December 14, 2018 By:

Mubarak Rashid Al-Mansouri, governor of the Central Bank of the United Arab Emirates (CBUAE), has confirmed that the central bank is working with the Saudi Arabian Monetary Authority (SAMA) to devlop a cross-border digital currency.

Speaking as a keynote guest of Abu Dhabi FinTech Symposium, Al-Mansouri said that UAE authorities had undertaken several new technology initiatives, among them is the joint project with the SAMA, Saudi Arabia’s central bank and market regulator.

“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 Al-Mansouri.

Al-Mansouri said that the two central banks are studying the concept of developing a cryptocurrency between the UAE and Saudi Arabia. However, he said they have not put a framework when the study will be completed and who will be involved from both parties. He also clarified that the cryptocurrency will be used only between banks.

In a separate statement, the Central Bank of the UAE said that in addition to SAMA and CBUAE, the project will also see participation from a number of commercial banks from both countries that will perform transactions using the cryptocurrency.

During his keynote speech, Al-Mansouri also announced that the UAE is working on legislation that would regulate crowdfunding platforms. He said that the recent developments in FinTech present both unique challenges and opportunities for the industry and the key is for both market participants and regulators to better understand the risks involved and the best ways to monitor and mitigate them.

“Crowd funding platforms and blockchain technologies are a case in point,” said Al-Mansouri. “Crowd-funding platforms, for example have gained widespread attention and growth over the previous few years. 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.”