The mutual digital currency of the UAE and Saudi Arabia, issued as part of the Aber project, has shown the technical viability of the concept of cross-border payments via blockchain. This is stated in a joint report of regulators.
The countries announced cooperation in studying the Central Banks Digital Currency (CBDC) and Distributed Ledger Technology (DLT) in January 2019. The research consisted of analyzing a mutual asset used in financial settlements between Saudi Arabia and the UAE via the blockchain.
The report’s authors noted the “significant superiority” of the issued CBDC “over centralized payment systems in the context of architecture sustainability.”
“All key requirements were met, including complex requirements for privacy and decentralization, as well as requests related to overcoming economic risks,” the project organizers concluded.
They recommended implementing distributed registry technology in existing systems to improve their security. The researchers also suggested attracting representatives from other regions to Aber and adding additional assets.
Recall that in June 2020, the financial regulator of Saudi Arabia used the blockchain to increase the volume of banks ‘ liquidity.