The UAE–Saudi mutual digital currency, issued under the Aber project, demonstrated the technical viability of cross-border payments via blockchain, according to a joint regulators’ report.
The two countries announced cooperation in studying central bank digital currency (CBDC) and distributed ledger technology (DLT) in January 2019. The study involved analysing a mutual asset to be used in financial settlements between Saudi Arabia and the UAE via blockchain.
The authors noted a ‘significant superiority’ of the issued CBDC over centralized payment systems in terms of architectural resilience.
“All key requirements were met, including the complex privacy and decentralisation requirements, as well as requests related to mitigating economic risks,” the project organisers concluded.
They recommended integrating distributed ledger technology into existing systems to enhance their security. Researchers also proposed inviting Aber representatives from other regions and adding additional assets.
Aber Report 2020 — En_4 by ForkLog on Scribd
In June 2020, Saudi Arabia’s financial regulator used blockchain to boost liquidity in banks.
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