The two countries have agreed to work on a proof-of-concept that is scheduled for completion in Q4 2019
The UAE’s Central Bank has denied media reports stating that the UAE and Saudi Arabia have begun using a digital currency for cross-border settlements.
In a clarification sent to media outlets, the CBUAE said that it is currently working with the Saudi Arabian Monetary Authority (SAMA) on a joint project “which constitutes a proof-of-concept (PoC) for experimenting with blockchain technology to facilitate cross-border payments between the two countries.”
The PoC, the statement said, is still in an early stage.
“[It] will help CBUAE gain a deeper understanding of the feasibility of distributed ledger technology in this field and explore the potential opportunities and benefits of a digital currency,” the statement said.
Both the CBUAE and SAMA have selected a tech company to support the implementation of the PoC, which is slated for Q4 2019.
Once completed, the outcome of the PoC will allow both countries to determine with a digital currency could be used in normal market operations between the two.