A Conceptual Experiment: CBUAE and SAMA Test on Digital Currencies

Executive Summary

• The Central Bank of UAE (CBUAE) is working with the Saudi Arabian Monetary Authority (SAMA) on a digital currency to speed up the financial transactions between the two countries. The countries have launched a distributed ledger Proof-of-Concept (PoC) system to facilitate cross-border settlements.
• The PoC which is at an early development stage (business and technical requirements gathering) is expected to be completed in the last quarter of 2019. A tech company is tasked with leading the PoC implementation. The Proof of Concept simulation supported by fiat currencies of the two countries will demonstrate the feasibility and practical potential of implementing the project.
• In the GCC, UAE has been a dominant Fintech player, especially in leveraging blockchain in its government processes and citizen services. The Emirates Blockchain Strategy 2021 aims to transform 50 percent of government transactions into the blockchain platform by 2021. UAE's Global Blockchain Council works with leading technological companies, financial institutes and government entities in exploring the current and future applications of blockchain technology.