Saudi-Emirati Coordination Council Launches a Pilot Cryptocurrency

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After more than a year since the crypto market’s massive
correction in early 2018, none of the various predictions about
an equally massive rally that might catapult prices back to its
late 2017 highs have materialized.

Bitcoin, the largest cryptocurrency based on market cap, is
currency trading at around $3,500 which is way below its
almost $18,000 all-time high in December 2017.

But what is surprising is that despite the depressed prices of
all cryptos, adoption of digital coins continues to spread
worldwide.
For instance, Saudi Arabia and UAE just launched a new joint
cryptocurrency to facilitate cross border payments.

Middle East’s New Joint Cryptocurrency Announced
The new joint cryptocurrency was announced during the first
meeting of the Saudi-Emirati Coordination Council held in Abu
Dhabi on January 19, 2019, according to WAM , UAE’s national
press agency.

The meeting was attended by all of the council’s 16 members
from both countries as they discussed various strategies on
possible areas of collaboration such as the financial markets,
aviation, customs, tourism, and security.
The launch of the Saudi-Emirati Pilot cryptocurrency is aimed
at facilitating cross-border payments at the moment.
Initially, it will only be used by banks during the experimental
stage as the council still wants to gauge the implications of
using cryptocurrencies and blockchain technology in such a
scenario.

The distributed database for the crypto will be shared and
maintained by all the participating banks as well as the central
banks of the two countries.

Saudi-Emirati Alliance
While initially limited only for cross-border payments between
Saudi and UAE, the success of this joint digital coin could have
a positive impact on the cryptocurrency market as a whole.
The financial might of the Saudi-Emirati alliance is among the
world’s strongest blocs as the combined sovereign wealth
funds of both countries is the second largest in the world.
The alliance’ clout also extends in the export, oil and corporate
sectors.

Combined, the two countries are ranked eighth worldwide in
terms of exports of services and goods, account for almost a
quarter of the world’s oil stock and is ranked 17th when it
comes to the market cap of their listed companies.
A cryptocurrency that can reliably handle the cross-border
bank transactions between the two countries is basically a
seal of approval on crypto’s use as a financial tool.

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