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UAE, Saudi Arabia consider issuing single digital currency

Piles of Bitcoins, a digital currency [fdecomite/Flickr]

The Central Bank of the UAE is conducting studies regarding the issuing of a single digital currency with neighbouring Saudi Arabia, the financial institution's governor revealed today.

Speaking at a press conference at the Arab Monetary Fund in the capital, Abu Dhabi, Mubarak Rashed Al Mansouri said: "There is a joint project with the Saudi Arabian Monetary Authority [the Central Bank] to use the blockchain technology in cross-border payment transactions between the two countries and that includes the issuing of a trading currency between them."

Blockchain technology allows multiple parties to have simultaneous access to a constantly updated digital ledger that cannot be altered and is the system on which Bitcoins run.

Blockchain serves as a register in which all financial transactions, assets, expenses, and similar financial operations are recorded, i.e., the general accounting register in the financial sector.

Al Mansouri said the studies are ongoing and it is difficult to determine how long they will take.

This project would mark the first time that monetary authorities from two different countries use such mechanisms in their cooperative work.

Read: Half of UAE's residents in debt

Middle EastNewsSaudi ArabiaUAE
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