Saudi Arabia’s Minister of Economy and Planning, Mohammed bin Mazyad Altwaijri and Mohammad bin Abdullah Al Gergawi, the Emirati Minister of Cabinet Affairs and The Future, recently announced the launch of the Saudi-Emariti Pilot Cryptocurrency.
As the UAE’s national press agency, WAM, reports, the cryptocurrency will initially be limited to banks. Once the government has gained a better understanding of how blockchain works across borders, the digital currency should see further use.
According to the publication, “The virtual currency relies on the use of a distributed database between the central banks and the participating banks from both sides,” seeking to safeguard customer interests, set technology standards and assess cybersecurity risks. The project will also help determine the impact of a central currency on monetary policies.
Recently, Chepicap reported that Saudi Arabia and IBM have partnered to apply blockchain to customs tracking. The partnership is expected to reduce transit times of shipments by as much as 40%.