Abu Dhabi: The Central Bank of the UAE (CBUAE) and the Saudi Central Bank (SAMA) have been awarded the Global Impact Award by Central Banking Magazine for their work on ‘Project Aber’. As evidence of the concept, Project Aber aims to investigate whether distributed ledger technology (DLT) enables cross-border payments between the two countries by relying on a double-issued digital currency as a settlement unit between banks in the two countries and domestically. The aim is to address the pain points in cross-border payments, in particular to reduce transfer time and costs.
Implemented during 2020 with the active participation of a number of commercial banks from the UAE and Saudi Arabia, the results confirm the possibility of using a digital currency issued by two central banks to make payments, either locally or across borders. settled by relying on an infrastructure. based on DLT. “Extensive digitization of financial services is one of our primary focus areas. In addition to the Saudi Arabian central bank, our Project Aber has started issuing a joint central bank’s digital currency, ”said Khaled Mohamed Balama, governor of the UAE central bank. The CBUAE and the Saudi Arabian Central Bank published the results of Project Aber in late 2020.