Central Banks of UAE Partner for a Blockchain Project

Bitcoin mining device in a close-up shot.

Bitcoin mining device in a close-up shot.

Saudi Arabia and the United Arab Emirates, the central banks of two large Arabian countries, collaborated to start a blockchain-based project. The banks claim that this new blockchain initiative is set to help the countries to make financial settlements between them using the blockchain technology. Also, according to both the banks, the central remittance systems of the two countries may be successful and well developed, but their international remittance systems may have some need to be upgraded to achieve better results. However, a trial phase was set to determine whether this new tool can or cannot be used to reduce the costs of international remittance. Thus, they planned to introduce a new digital currency “ABER”.

Aber is limited to financial settlements using blockchain technology and only a few state companies are set to be using it at first. Initially, it was in the framework of “Proof-of-concept”, which can be concluded by thorough understanding and analyzing the dimensions of modern technologies and their feasibility through practical application and their impact on the enhancement and minimizing the payment costs and the assessment of technical risks and how to deal with them. Overall, Aber has to pass all the tests and the criteria of the government in order to become a full-fledged initiative.

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