United Arab Emirates (UAE) and Saudi Arabia Plan to Create New Cryptocurrency

January 23, 2019 / by Steven Lubka

The United Arab Emirates (UAE) and Saudi Arabia have recently started working together on the creation of a new cryptocurrency.

The Emirate News Agency, an official news arm of the UAE, announced that the executive committee of the Saudi-Emirati Coordination Council held a 16-member meeting between the two countries to discuss the “Strategy of Resolve,” a seven plan initiative.

While the initiative includes a variety of goals, the development of a cross-border cryptocurrency is one of them. This cryptocurrency will not be similar to Bitcoin.

It will be solely used by banks to make cross-border payments. The aim of the cryptocurrency is for both nations to learn more about blockchain technology, cryptocurrencies, and enable cross border payments.

The Saudi-Emirati Pilot cryptocurrency seeks to safeguard customer interests, set technology standards, and assess cybersecurity risks.  An additional goal is to understand how a central currency affects financial policy

The initiative seems like an avenue for both countries — which have previously expressed pro-blockchain and pro-cryptocurrency sentiments — to explore the actual implementation of a cryptocurrency and the underlying blockchain system.

While this appears to be a testing of the waters rather than full-scale adoption, it demonstrates an ongoing commitment to improving national infrastructure through the benefits offered by distributed ledger technology.