The Saudi Arabian Monetary Authority (SAMA) has selected a consultant to work with the central banks of Saudi Arabia and the United Arab Emirates, for launching a digital currency that would be accepted in cross-border transactions between the two countries.
Ahmed al-Kholifey, Governor of the Saudi ArabianMonetary Agency (central bank), said Tuesday operations will take place for six months as a trial and to evaluate the experience, in statements quoted by Al Eqitisadia newspaper.
Al-Kholifey said this digital currency will be different from bitcoin, as he expressed skepticism against trading it because it was outside the bank’s regulatory reach.
Saudi Arabia and the UAE are working to issue digital currency to keep up with the latest technologies and practices.
Although there is official skepticism around bitcoin, blockchain is viewed as a groundbreaking system with huge potential.
The new currency, restricted to inter-bank transfers only, will be recognized by the governments of both countries.