UAE and Saudi Arabia to issue a cross-border cryptocurrency

UAE central bank is collaborating with Saudi Arabian Monetary Authority (Sama) to issue a cryptocurrency on blockchain, in order to facilitate cross-border transactions between the two countries. This is according to the central bank's governor Mubarak Rashed Al Mansouri speaking on Wednesday in Abu Dhabi.

The collaboration will also include a number of commercial banks in each country. The cryptocurrency will be limited to inter-bank use or in other words, transfer of ownership of a central bank asset, and not for public usage.

Mansouri was speaking at the high-level meeting for the Arab region on global banking standards and regulatory and supervisory priorities. Mansouri added that he hoped the collaboration will foster similar collaborations in the region. He did not give an issuance date for the digital coin.

He said market participants and regulators needed to understand the risks involved in the recent fintech developments, which presents unique challenges and opportunities for the industry, and the best ways to monitor and mitigate them.

He gave an example of crowd-funding platforms and technologies which he said have gained widespread attention and growth in the past few years. He said the initiate for UAE central bank to develop regulations in regard to these platforms and technologies, which started in 2016, was at a final stage.