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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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Saudi bankers: "transient" digital currency will swim in a sea of ​​losses

rocky
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Join date : 2012-12-21

  Saudi bankers: "transient" digital currency will swim in a sea of ​​losses Empty Saudi bankers: "transient" digital currency will swim in a sea of ​​losses

Post by rocky Wed 06 Mar 2019, 2:11 pm

Saudi bankers: "transient" digital currency will swim in a sea of ​​losses

  Saudi bankers: "transient" digital currency will swim in a sea of ​​losses 13452

Starting next year, Saudi Arabia and the UAE will have their own currency for interbank trade, away from the US dollar and the euro, a non-printed digital currency intended to reduce remittance costs and test the currency's ability to act as an additional reserve system for local central payments. To provide a safe haven for hard currency.
The new currency is a digital alternative to the unified Gulf currency of Karam, a project that was not seen despite its adoption nearly 10 years ago due to disagreements over the central bank's position on the single currency.
The Saudi Monetary Agency (SAMA) disclosed that the "transient" currency is intended to control the joint commercial payments systems between the two countries by allowing banks to deal directly with one another to implement remittances. However, over the next two years, But would be allowed to be an additional reserve system for central systems for settling local payments when they were disrupted for any reason. During this period, the focus will be on the technical aspects. It will also be limited to a limited number of banks, namely, three banks in each country, in order to ensure that there are no technical obstacles and economic aspects and legal requirements for future uses will be studied.
 
According to reports by the UAE Central Bank, the new currency is created, stored and exchanged on its separate "Balkukin" networks. The digital currency blockkin is the general ledger of all currency transactions that have ever taken place, through which currency flows are monitored, their integrity is assured, and the physical equivalent of them exists.
 
The project will take place over the next ten months to study the dimensions and feasibility of modern technologies and their impact on improving and reducing the costs of conversion processes and the assessment of technical risks and how to deal with them. The pilot program aims to assess the impact of this currency in the current financial policies, before the start of implementation in early 2020.
 
The way of "transient"
 
The transient digital currency is planned to be a substitute for conventional currency, especially the US dollar, but it will not be a digital currency available for personal exchange, but for commercial exchange between Saudi Arabia and the UAE only as a first step to launch globally. Central Bank of UAE. The first phase will be "experimental" in order to explore the dimensions of block chain techniques and distributed records used in digital currency trading.
 
About a month after the announcement, 11 months before the official launch, the responses of financial analysts and bankers on the "transient" digital currency, announced by Saudi Arabia and the UAE in mid-January, varied as a means of banking between the two countries. At a time when analysts considered the currency would provide a lot of foreign exchange to the banks of the two countries, others questioned the feasibility of issuing an electronic currency at a time when the existing digital currencies of a sharp decline in value and the formal tightening of its activity.
 
strong relationship
 
There are a lot of problems on the horizon, according to financial analysts who spoke to the 22nd berth. This currency will not enter into actual deal before 2020, and this will be after the qualification of technical cadres that will deal with technology in the future, according to bankers, many obstacles will face the new currency, and because of them may not You see the light already.
 
The financial analyst Dr. Fahad al-Nasser, a former banker, confirms that no data can govern the new currency, and must wait several months to analyze the data, and says to shelf 22: "Currently there is no basis for the revaluation of the currency, and as long as confined to the bank exchange, Which can be accurately assessed, we need to be available for personal trading to see where it is going. " "We have only SAMA and UAE Central Bank data, which are not detailed and can not be built on, but in general Saudi-UAE trade is limited, not more than $ 20 billion, mostly oil and oil derivatives, This exchange is growing rapidly, reaching about 11% last year, which is a candidate for the increase thanks to the strong relationship between the two countries. "
 
"The currency market is volatile and uncontrollable, especially the digital currencies, which have seen significant fluctuations in the last two years," he said, We do not yet know whether the currency is pegged to the local currency or the US dollar, but in both cases the new currency will be vulnerable to sharp currency market volatility. "
 
Digital currencies are experiencing a sharp fall in their prices, according to banker Mazen Al-Sharari, executive director of Money & Business. Financial currencies are virtual currencies that are traded on the Internet and are not printed or drawn by specific monetary authorities. "These currencies are used to buy goods and services, to deal with some electronic financial services in commodity markets and others, as well as to convert them against the dollar and the euro at rates that change throughout the day on global exchanges. The traditional that it has a high encryption system is difficult to pirate it, "and adds:" Its advantage has made it unwelcome in many countries, especially in Arab countries, because it is difficult to control, know where it comes from and where it is spent, making it an ideal way to launder funds by switching from bank accounts to digital currencies. " In the future, except for the fluctuation of their prices. "It is true that the digital currencies are very protected and difficult to penetrate, but the pirates are developing day after day, and if they succeed in decrypting it will be a great threat to the banks that deal with them and may lead to bankruptcy, , Will also be difficult to follow, which will work Me a lot of money to protect them. "
 
In a different direction, financial analyst Bandar al-Jaid says that the "transient" currency has advantages that do not belong to any of the digital currencies traded in the market, such as Betquin and others, which are supported by the two central banks in both countries, making it more convenient and secure. "Unlike the rest of the digital currency, which faces wars from countries and strict restrictions," transient "is unique in nature to the rest of the digital currency. It is issued and supported by government authorities in both countries, not by unknown programmers.The goal of digital currencies is to save the time it takes to transfer money from one country to another, and to remove the banks from the money transfer equation, which leads to the disappearance of the cost of financial transactions by banks and banking and financial institutions, which will provide transient to local banks, Service, not open to speculation in currency markets, such as the currency of Betquin and others, which also means it will be more stable in value.
 
A dangerous market
 
Digital currency markets face many risks and price volatility. They are subject to legal tightening, especially in Europe and the United States of America, as a fertile ground for financing terrorism and money laundering. In 2018, the Securities and Exchange Commission in the United States rejected a large number of applications by companies to operate digital currency trading platforms to establish mutual funds in Pitcullin. Bankers fear that such a currency will be treated in the future, and the digital currency market , Suffered a violent shake last year, falling from $ 449 billion to less than $ 114 billion, and lost about 75% of its value.
 
Saudi Arabia warned two days ago of dealing with digital currencies. The Ministry of Trade and Investment issued a formal warning from websites promoting the investment in virtual currency on the Internet and social media. The ministry said that these sites claim to be licensed by the official authorities in the Kingdom, This is not true, and the citizens are asked to report it. This prompted Nasser to ask: "What will be different from others?" He adds: "We have to wait until next January to know the rest of the financial details of the new currency.


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