A report dated 19 January 2019 by Emirate News Agency highlighted the bonding between the United Arab Emirates (UAE) and Saudi Arabia to collaborate on key partnerships including a cross-border digital currency.
The report introduced the Executive Committee of the Saudi-Emirati Coordination Council by citing that 16 delegates from both the countries met in Abu Dhabi to track the progress of joint initiatives.
This coming together for a cryptocurrency project is to understand the effect of a central currency on financial rules. The initiative seeks to bring in standards for technology and study cybersecurity risks.
Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs and The Future, is heading the UAE side, representing Saudi Arabia is Mohammed bin Mazyad Altwaijri, Minister of Economy and Planning.
Officially termed as the ‘Strategy Of Resolve’, the seven strategic initiatives that form a part of this tie-up include financial markets, aviation, tourism, entrepreneurship and a host of vital portfolios. The committee has been entrusted with the smooth success of the planned action items.
The Emirate news body emphasized the magnitude of this alliance noting it as one of the ‘strongest economic alliances’ that the financial world has encountered. Ranking second, the combined asset power of the Saudi Kingdom and UAE has the potency to rule markets. Besides, these countries command an almost a quarter of the world’s oil reserves.
There is a diverse range of topics that the committee wants to streamline through this alliance. Easing the flow of traffic at entry ports between the countries and at custom outlets through fast track facilities are few considerations that promote smoother operations.
Likewise, to boost an in-depth approach where both governments can effectively handle mutual acquisitions and purchases, a platform would be enabled to support Subject Matter Experts(SMEs). To cater to the younger generation, financial concepts would be introduced to children aged between 7 and 18.
Perhaps the hallmark of the duo alliance would be the introduction of a Saudi-Emirati Pilot cryptocurrency. A novel pilot cryptocurrency was launched at the time of the meeting. The primary use case of this cryptocurrency was envisioned to be used in banks on an experimental basis, to better understand blockchain technology.
The digital coin would leverage distributed databases that would operate between central and participating banks from both the countries. The news emphatically quoted:
“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 middle east countries are already well renowned for their progressive outlook towards modernization and bringing in material comforts to its citizens. This collaboration to further expand the frontiers of cryptocurrency would be a welcome change that crypto enthusiasts would have been eagerly waiting for.