Saudi and UAE central banks release results of joint CBDC project

The Saudi Arabia Central Bank (SAMA) and Central Bank of United Arab Emirates (CBUAE) released a report on Project Aber, a joint digital currency and distributed ledger proof of concept. Aber means “crossing boundaries” in Arabic.

The initiative sought to explore whether distributed ledger technology could enable cross-border payments between the two countries to be reimagined: using a new, dual-issued digital currency as a unit of settlement between commercial banks in the two countries and domestically.

Over the course of a year, use cases were designed, implemented, and operated; with the solution, results, and key lessons learned documented. The project confirmed that Distributed Ledger Technology (DLT) can provide central banks with the ability to reimagine both domestic and cross-border payment systems in new ways.

The project was structured into three distinct phases or use cases to explore:

  • cross-border settlement between the two central banks;
  • domestic settlement between three commercial banks in each country
  • cross-border transactions between the commercial banks using the digital currency.
Source: Saudi Arabia Monetary Authority. Notes: Jasper, Bank of Canada; Stella, Bank of Japan and European Central Bank; Ubin, Monetary Authority of Singapore

Read the full report

Related Posts

Previous Post
Basel oversight group marks end of Basel III, supports measured drawdowns of reserves during stress periods
Next Post
Does regulatory data collection negatively impact market activity? (Premium)

Fill out this field
Fill out this field
Please enter a valid email address.

X

Reset password

Create an account