Cryptocurrency cross border payments between Saudi Arabia and UAE have been enabled by the development of the blockchain technology. Large scale financial implementation through virtual currencies has been a mode of an experiment to upgrade the financial strategy and the dealings of interbanks. The main motive of the banks is to elevate the financial status of the country that is a slow procedure for the traditional banking authorities of the two countries.
The first meeting was held in Abu Dhabi by the executive committee of Saudi Emirati Coordination Council. Participants of 16 members were present from both the countries. Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs and The Future, represented UAE and Saudi Arabia was represented by Mohammed bin Mazyad Altwaijri, Minister of Economy and Planning finally announced to work on seven joint initiatives. The commitments on the joint initiatives on cryptocurrency cross border payments which will begin this year and executed throughout the year 2019. The main aim is to improvise the economic conditions of both countries.
The cryptocurrency will be limited to both the interbanks of the countries applying all the blockchain processes overcoming the traditional hierarchy. Successful application of the blockchain technology will generate economic development to financial awareness as it is one of the benefits of cryptocurrency cross border payments, as published on Ethereum World News.
Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports and improving airports to make it easier for people with disabilities to travel. The worlds second-ranked sovereign country UAE introduced banks to cryptocurrency cross border payments, following after the United Kingdom. The Arab News reported that the blockchain technology will be limited between the two banks till the government obtains a better idea of this technology,
By the end of the session, a pilot project was declared for the development of a common acceptance of cryptocurrency interbank nature without any delay or doubt:
“The cross-border digital currency will be strictly targeted for banks at an experimental phase with the aim of better understanding the implications of Blockchain technology and facilitating cross-border payments. The virtual currency relies on the use of a distributed database between the central banks and the participating banks from both sides. It seeks to safeguard customer interests, set technology standards and assess cybersecurity risks. The project will also determine the impact of a central currency on monetary policies.”[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]