Saudi and UAE leaders confirm digital currency launch

Source: Sina Finance

FX168 Financial News (Hong Kong): According to Finance Magnates reported on Thursday (November 28), leaders of Saudi Arabia and the United Arab Emirates confirmed that the two countries will start the development of digital currencies.

According to local media TheNational.ae reported on Wednesday, digital currencies will be used for transactions between banks in both countries.

On Saudi Arabia's Crown Prince Mohammed bin Salman's latest visit to the UAE, he signed the agreement with Crown Prince Abu Dhabi and Sheikh Mohamed bin Zayed, deputy top commander of the UAE armed forces.

The digital currency plan is one of four new policy partnerships reached between the leaders of the two countries. In addition, the leaders of the two countries have also decided to review seven strategic initiatives.

The plan also includes the joint construction of a large refinery with a daily output of 1.2 million barrels of crude oil. The two countries also agreed to strengthen cyber security measures between each other.

Bank officials from both countries also plan to hold a meeting to discuss the challenges and opportunities facing their respective financial sectors.

Earlier this year, the UAE Central Bank and the Saudi Arabian Monetary Authority (SAMA) announced plans to introduce interbank digital currencies, and the two countries are expected to sign usage agreements.

At the same time, blockchain companies are flocking to the Middle East to develop this market with huge growth potential. Earlier this year, Bithumb partnered with Nvelop to launch a crypto exchange system in the UAE, and Huobi recently entered the market.