The UAE and Saudi Arabia have recently revealed a cryptocurrency which is developed by both nations. Aber is about to begin its pilot testing procedure within few selected banks initially. The Saudi Arabian Monetary Authority made the announcement on January 29, 2019.
Introduction to Aber
Aber, a national cryptocurrency jointly developed by both UAE and Saudi Arabia. It will be devised by the central banks of the United Arab Emirates(UAE) and Saudi Arabia. Also, the whole process contains study of technical requirements behind Aber production. The main idea behind this is to determine whether in case of disruption, a cryptocurrency could be usable or not.
Aber is similar to the Bitcoin where we use the Blockchains and Distributed Ledgers technologies. But the difference is that no one owns the Bitcoin. Whereas, Aber will be under the control of the Saudi Arabian Monetary Authority and the United Arab Emirates(UAE) Central Bank.
Aim behind the project
Aber will be in use for financial settlements between the two countries through Blockchains and Distributed Ledgers technologies.
The aim of pilot project is at studying the practical application of modern technologies and determining their impact on the reduction of remittance costs and assessment of technical risks and how to deal with them.
Also, banks explained that the aim behind this concept is “Studying aspects of modern technologies and their implementation through practical application and determining their impact on improving and reducing the costs of remittances, as well as assessing technical risks and ways to eliminate them.”
“In case that no technical obstacles are encountered, economic and legal requirements for future uses will be considered,” they added.
Why a National Cryptocurrency?
In this modern era of digitization, digital transactions plays a very sensitive role. They are much easier, cheaper and faster comparing with the hard cash.
Moreover, the value of remittances being sent overseas from the US is greater than ever. World Bank data states that over $148 billion was sent abroad from the US in 2017.
With an increasingly interconnected world seeing more people than ever moving abroad to work- and send money back home. Migrants are looking for easier ways to cut costs and avoid getting into trouble by banks and other middlemen. One effective way of doing so is of course with cryptocurrency.
Other countries working on Cryptocurrency
The central banks of some countries have already begun pilot projects to explore the verticals of Blockchain and distributed ledger technologies in the circulation of digital currencies.
The countries that have already begun working on the pilot project include Sweden, Bhamas, Urugay and Russia.
So, comment below and let us know your views on cryptocurrencies. Are they a boon or a bane to the digital world?