Saudi Arabia and the UAE: digital currency supports cost reduction and payment systems


The Saudi Central Bank “SAMA” and the Central Bank of the United Arab Emirates announced, in a joint statement, the results of the “transient” project to issue a digital currency, at the forefront of which is the development of payment systems and the reduction of costs. According to a statement by the Central Bank of Saudi Arabia, the two banks launched a “transient” project as an innovative initiative aimed at proving the principle, understanding and studying the dimensions of issuing a digital currency to central banks), and using the technology of closely distributed records in order to implement financial transfers between banks in the two countries in a way that guarantees shortening the time of completion and reducing their cost. , By issuing a fully covered digital currency for the two central banks issued jointly between SAMA and the UAE Central Bank, and is used only by the two central banks and the banks participating in the initiative as a settlement unit for the operations of commercial banks in the two countries. The two parties confirmed that the final results of the project confirmed that the distributed records technology will contribute to providing central banks with the necessary capabilities to develop payment systems at the local and cross-border levels. The two parties hope that the project will represent a base for further studies and applications, in partnership with central banks and relevant international organizations, which focus in particular on studying the implications that may result from monetary policy tools and the stability of the financial sector.

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