The central banks of the UAE and Saudi Arabia have launched a common digital currency called “Aber”, which will be used in financial settlements between the two countries through Blockchains and Distributed Ledgers technologies. This will establish an additional means for the central financial transfer systems of the two countries and enable banks to directly deal with each other in conducting financial remittances.
Through this digital currency, both the United Arab Emirates Central Bank (UAECB) and the Saudi Arabian Monetary Authority (SAMA) are studying the impact on the improvement and reduction of remittance costs and the assessments of risks.
The news comes over a year after it was reported in December 2017 that the two central banks were planning to trial a new cryptocurrency for cross-border payments.
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