The financial authorities of Saudi Arabia and United Arab Emirates are developing your own cryptocurrency. The project aim in improve the financial transactions between banks and financial institution in both countries. Therefore, the cryptocurrence will be not opened to public being restricted to government agencies.
Mubarak Rashed Al Mansouri, governor of Central Bank of United Arab Emirates, believes in the efficiency of crypto technology. Therefore, is dialoguing with Saudi Arabian Monetary Authority (SAMA) to develop an initial study. However, the optimist vision is just to technology of cryptocurrencies, because the saudi government don’t allow bitcoin.
According Al Mansouri, he expect a proof of concept targeting the transference of assets between the Central Bank and others participants. The governor of Central Bank highlight the opportunity that the technology brings, as published in an article at Gulf News. So, this is a great opportunity to regulators agents understand this market and his risks innered.
Cryptocurrencies for transactions between countries
One of the most attractive applications to cryptocurrencies is the application in international transactions. The banks shows interest in use this technology to increase the efficiency and decrease costs. Recently the American Express approved a test with Amex, a system developed by Ripple focused on transference between countries using the blockchain technology. This project can open an opportunity to both countries regulate his internal crypto market. Recognizing the efficiency of the technology for international transferences, the regulatory authorities may claim for the legalization of cryptocurrencies. Therefore, this is a great opportunity to cryptocurrency enter in the arabic market.