The Executive Committee of the Saudi-Emirati Coordination Council, in their first meeting in Abu Dhabi, have agreed to launch a Saudi-Emirati Pilot Cryptocurrency.
The UAE committee was headed by Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs and The Future while the Saudi side was led by Mohammed bin Mazyad Altwaijri, Minister of Economy and Planning. They, together, announced the launch of seven initiatives between UAE and Saudi Arabia that would target the following fields:
1.Services and financial markets
5.Customs and security.
One of these seven initiatives is a joint cryptocurrency.
Beginning as an experiment, this project aims as a medium for the better understanding of cryptocurrency in specific and blockchain in general. This will allow both countries to weigh in the potential assets and liabilities this technology holds.
As cryptocurrency is an alternative currency, the project will also determine the impact of a central currency on existing and upcoming financial policies.
An excerpt from the report of a local media outlet reads:
‘The cross-border digital currency will be strictly targeted for banks at an experimental phase with the aim of better understanding the implications of Blockchain technology and facilitating cross-border payments. The virtual currency relies on the use of a distributed database between the central banks and the participating banks from both sides. It seeks to safeguard customer interests, set technology standards and assess cybersecurity risks. The project will also determine the impact of a central currency on monetary policies.’
This puts UAE and Saudi actively into the race for equipment of their countries with the future technologies that are bound to revolutionize, for better or worse, the financial sphere.