The leaders of Saudi Arabia and the United Arab Emirates have confirmed that they will start developing digital currencies, According to The Finances on Thursday (November 28). Local media The National.ae reported on Wednesday that the digital currency would be used for transactions between banks in the two countries.
During a recent visit to the UAE by Saudi Crown Prince Mohammed bin Salman, he signed the agreement with Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
The digital currency initiative is one of four new policy partnerships reached by the leaders of the two countries, in addition to which they have decided to review seven strategic initiatives.
The plan also includes a joint construction of a large refinery of 1.2 million barrels of crude oil per day, and the two countries have agreed to strengthen cyber security measures with each other.
Bank officials from both countries also plan to hold a meeting to discuss the challenges and opportunities facing their respective financial sectors.
Earlier this year, the UAE’s central bank and Saudi Arabia’s monetary authority (SAMA) announced plans to introduce an interbank digital currency, which is expected to be used.
At the same time, blockchain companies are flocking to the Middle East to tap into a market with huge growth potential. Earlier this year, Bithumb teamed up with Nvelop to launch an encryption switching system in the UNITED Arab Emirates, which Huobi recently entered.