Six commercial banks operating in the UAE and Saudi Arabia have joined a currency project that aims to conduct cross-border transactions using crypto. Argaam, a major financial news portal in Saudi Arabia, first revealed the news.

Argaam noted that the aim of this new project is to utilize crypto in financial transactions between the UAE and Saudi Arabia. They deduced this from comments made by the Central Bank of the UAE.

News about crypto development between the UAE and Saudi Arabia was first revealed in December 2018. This was when the UAE central bank and the monetary authority of Saudi Arabia announced the two nations intended to use crypto for cross-border transactions.

The latest news reveals that the six banks, whose names have not been released, will join the crypto project. The project has been named Aber is going to be implemented in the next 12 months.

The official launch of this project will depend on how the trial stag works out. It will be up to the monetary authority in Saudi Arabia and the UAE central bank to analyze the project and decide whether it worked out.

A while back, the UAE and Saudi Arabia announced that the two nations would corporate on a joint cryptocurrency. The aim was to help them improve their understanding of how blockchain tech works.

According to media reports, the Executive Committee for Saudi-Emirati Coordination Council held a meeting in Abu Dhabi. The aim was to examine initiatives in the Strategy of Resolve.

This strategy comprises of seven initiatives in various fields such as financial awareness youth training, civil aviation, and development of digital currency. At the time, reports said it would only be targeted at banks during the experimentation stage.

The project would also seek to understand how a central currency would affect financial policies. This project seeks to protect the interests of customers, create technology standards, and examine the cybersecurity risk. At the same time, it will assess how it will affect monetary policy.

The UAE is also seeking to join a list of nations that are crypto friendly where blockchain powered businesses can thrive. To do this, the nation is working on crypto legislation. The legal framework will cover ICOs and it may even include crypto exchanges. This could see the nation join destinations such as Malta, where crypto has been fully embraced.

Experts believe that the UAE is in a perfect position to be a global leader in the ICO sphere. When the legislation happens, the nation could become the most promising destination for ICOs. However, for the nation to be competitive, it needs to invest in homegrown developers and investors. This way, the industry will become sustainable inside the nation.

The Abu Dhabi Securities Exchange, Dubai Financial Market, and the Securities and Commodities Authority of the UAE are reportedly working together to create an ICO token platform.

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