UAE, Saudi Arabia Test Plans For New Cryptocurrency

UAE, Saudi Arabia Test Plans For New Cryptocurrency. The Arab Monetary Fund issued a press release stating that the fund is works on financial technology concepts and that central banks and other regulatory bodies are exploring how this can be utilized. Although cryptocurrency and the blockchain system have not been directly referenced in the press release, it is believed that these points will make some kind of an impact.

The new plans from the two countries would focus on digital functions to improve upon the connections made between banks in both countries. These include both larger central banks and the smaller banks that serve the general public.

This marks the first time that the two Middle Eastern countries have worked together to manage digital currency activities and other online functions in a distinct manner.

Much of what the two countries are working on delves heavily into the field of cyber-risk control and regulation. This includes helping with finding solutions to produce communications that cannot be stolen or hacked into among other commonplace threats.

The development comes as the UAE continues to become a powerhouse in the blockchain field. The Global Blockchain Council in Dubai has particularly been utilizing plans to help with promoting the blockchain industry and to improve upon how well particular transactions that utilize the blockchain work. In 2016, the UAE developed its first ever regulations over how blockchain technology is to be used and how it may help with producing a stronger and safer experience when transferring data.

Various financial groups have analyzed the blockchain with Emirates NBD being among the larger entities working with the blockchain. Emirates NBD is producing a new service to help with validating bank checks.

Saudi Arabia’s work within this conference is significant in that the kingdom has not given out information on what it wants to do with cryptocurrencies or blockchain technology.

The general goal between the two countries is the digitalize functions that the two already utilize between one another. But if a new cryptocurrency is produced, it would not be available to the public. This is due to the need for the new project to be kept private and to work between groups within the government.

There is also a potential for such actions carry over to the public sector as there is a desire to protect the needs that individual consumers around the Middle East have when transferring money between parties.

On a related note, UAE Central Bank governor Mubarak Rashid Al-Mansouri also stated that new regulations for the financial technology sector are being drafted. This includes a focus on crowdfunding actions. Part of this is to help with protecting the needs that consumers have. Al-Mansouri did not specifically mention ICOs but he did say that the need to produce better standards for such financial actions is vital.