Wednesday, January 23, 2019

Saudi-Emirati Coordination Council Launches a Pilot Cryptocurrency

After more than a year since the crypto market’s massive correction in early 2018, none of the various predictions about an equally massive rally that might catapult prices back to its late 2017 highs have materialized.

Bitcoin, the largest cryptocurrency based on market cap, is currency trading at around $3,500 which is way below its almost $18,000 all-time high in December 2017.

But what is surprising is that despite the depressed prices of all cryptos, adoption of digital coins continues to spread worldwide.

For instance, Saudi Arabia and UAE just launched a new joint cryptocurrency to facilitate cross border payments.

Middle East’s New Joint Cryptocurrency Announced

The new joint cryptocurrency was announced during the first meeting of the Saudi-Emirati Coordination Council held in Abu Dhabi on January 19, 2019, according to WAM, UAE’s national press agency.

The meeting was attended by all of the council’s 16 members from both countries as they discussed various strategies on possible areas of collaboration such as the financial markets, aviation, customs, tourism, and security.

The launch of the Saudi-Emirati Pilot cryptocurrency is aimed at facilitating cross-border payments at the moment.

Initially, it will only be used by banks during the experimental stage as the council still wants to gauge the implications of using cryptocurrencies and blockchain technology in such a scenario.

The distributed database for the crypto will be shared and maintained by all the participating banks as well as the central banks of the two countries.

Saudi-Emirati Alliance

While initially limited only for cross-border payments between Saudi and UAE, the success of this joint digital coin could have a positive impact on the cryptocurrency market as a whole.

The financial might of the Saudi-Emirati alliance is among the world’s strongest blocs as the combined sovereign wealth funds of both countries is the second largest in the world.

The alliance’ clout also extends in the export, oil and corporate sectors.

Combined, the two countries are ranked eighth worldwide in terms of exports of services and goods, account for almost a quarter of the world’s oil stock and is ranked 17th when it comes to the market cap of their listed companies.

A cryptocurrency that can reliably handle the cross-border bank transactions between the two countries is basically a seal of approval on crypto’s use as a financial tool.

Saudi-Emirati Coordination Council Launches a Pilot Cryptocurrency was originally found on Cryptocurrency News | Blockchain News | Bitcoin News |

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.
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