Saudi Arabia and Emirates want to test the crypto-currency

Home News Saudi-Arabia and the Emirates want crypto-currency to test

Of
Matthias Nemack –
04.02.2019

The two countries intend to examine, in a first Test, whether a common crypto currency can open up new opportunities in the free trade.

Economic partners to reduce trade costs

In the Winter of 2018, the government of the United Arab Emirates, announced a new legislation to implement. Thus, the country wants to create a clear legal framework for the rapidly growing crypto market in the Region. Proven can increase the Arab investors for the digital currencies, new Blockchain-companies on the spot for some time, steadily. Now the Emirates together with Saudi Arabia as an important regional Partner is probably still a step further. The two States plan seemingly a common currency as a Quasi-competitor to Bitcoin, Ether, and other Coins, found in the Arab world new trailer.

Stable trading system is to be improved through currency

In a way, the countries follow the activities of other countries, such as Iran or Venezuela, but from a different Motivation. Because while Venezuela contain, for example, economic problems through the own Token is “Petro”, the high Inflation and the economy wanted to master the crisis, it is Saudi Arabia and the United Arab Emirates in cooperation in no way measures of crisis management. Rather, both countries are linked economically to each other by a common crypto currency the governments want to back, according to a published opinion.

State crypto-currencies are in many places in the conversation

In particular, the difficulties faced by different state currencies in cross-border trade to create the new currency of the world. High transaction costs due to the currency exchange if you want to prevent. It is not intended to the project in the test phase, but for ordinary investors and companies. The only (Central) banks should have access to the new currency system. If the concept is successful, there could but follow quite an extension. Also in the EU and in other regions of the Considerations is whether crypto-currencies within new tariff-free free trade agreements can be a useful addition.

Featured Image: By K. unshu | Shutterstock.com