Abu Dhabi – Mubasher: The UAE Central Bank (UAECB) and the Saudi Arabian Monetary Authority (SAMA) on Tuesday announced the launch of the common digital currency project “Aber”.

The new currency will be used in financial settlements between the two GCC countries through Blockchains and Distributed Ledgers technologies, according to a joint statement released by the two entities.

The move is part of “Proof-of-Concept” framework which can be summed up in closely understanding and studying the dimensions of cutting-edge technologies and their feasibility through practical application, the UAE's state news agency WAM reported.

The project also comes along with the qualification of cadres that will deal with the technologies of the future and understanding the requirements of issuing a digital currency for use by the two neighbouring nations.

The new currency will establish an additional means for the central financial transfer systems of the two GCC countries and enable banks to directly deal with each other in conducting financial remittances.

“UAECB and SAMA hope that their pilot projects will benefit everyone locally and internationally. Based on this desire, the two countries do not only aspire to be the forerunners in the application of modern technologies but also in their adaptation, development and delivery to the world,” WAM said.

However, the use of the currency will be restricted to a limited number of lenders in each state, and in case no technical obstacles are encountered, economic and legal requirements for future uses will be considered., the statement said. ‏