Aber (cryptocurrency)

2019: Creation of cryptocurrency

At the end of January, 2019 Saudi Arabia and the United Arab Emirates (UAE)  announced creation of joint cryptocurrency under the name Aber which should facilitate financial calculations between the countries.

The project was announced by the Agency of currency circulation of Saudi Arabia (SAMA, the body performing functions of the Central Bank of the kingdom) and the Central Bank of the UAE. They stated that though centralized systems of money transfers in both countries "developed with advancing and proved the working capacity", international money transfers need improvement.

Saudi Arabia and the UAE signed the agreement on creation of joint cryptocurrency

The cross-border digital currency which was created by Saudi Arabia and the UAE will be strictly focused on banks at an experimental stage for the purpose of the best understanding of effects of blockchain technology and simplification of cross-border payments , says finance regulators.

It is noted that creation of cryptocurrency will also promote establishment of technology standards, risks assessment of cyber security and influence of common currency on monetary policy. Besides, Aber can become a basis of new standby system for financial calculations within the country.

At the initial stage only the Central Banks and commercial banks of two countries will be able to use cryptocurrency.^[1]

At the end of 2018 the Minister of Communications and Information Technologies of Saudi Arabia Abdullah Alsvakha spoke about development two a pilot project using a blockchain. According to the official, the first is an initiative, joint with the UAE, of use of smart contracts. The second project consists in development of financial technologies in such industries as insurance and hedging of currency risks, the minister added.

In 2018 SAMA signed the agreement with the cryptocurrency Ripple platform on use of this technology for bank payments.

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