The central banks of the UAE and Saudi Arabia announced the successful completion of testing of the joint digital currency Aber for international payments.
The Aber project was first announced in January last year. The central banks of Saudi Arabia and the United Arab Emirates (UAE) have begun jointly testing the digital currency to reduce the cost of cross-border transfers, as well as to contribute to the study of state-owned cryptocurrencies and distributed ledger technology (DLT).
The Arabic name Aber means “crossing borders”, which indicates the main task of the project – to ensure the interaction of banks of the two countries with the help of the latest technologies. Six commercial banks also participated in the digital currency study to study in more detail the issues related to the current payment systems and the security of their operation.
Banks have concluded that the cryptocurrency is “technically viable” for making international payments. In addition, the Aber architecture is much more robust compared to centralized payment systems. The digital currency meets the requirements for confidentiality and decentralization, as well as the requirements related to overcoming economic risks and the ability to track monetary resources by central banks.
Regulators in the UAE and Saudi Arabia have said that DLT technology can improve the security of payment systems. The banks said that they will continue to explore the digital currency and will involve partners from other countries in testing. In the future, it is planned to use DLT to make transactions with other assets, such as bonds.
Earlier, the head of PayPal, Dan Schulman, said that soon cryptocurrencies will be used to make any payments, so sooner or later the central banks of different countries will issue their own digital currencies.