Saudi Arabian Central Bank continues its CBDC research

Central Bank of Saudi Arabia (SAMA)continues its research on CBDCs at full speed.

a January 23 bulletin According to the news, the central bank cooperates with local banks and fintechs in cooperation with local wholesalers. CBDC Working on a project that focuses on use cases.

However, the Central Bank of Saudi Arabia underlined that there is no final decision yet to launch such a digital currency.

The central bank, although for now CBDC Although they do not have plans to drive, they continue to explore the benefits and potential risks of using these assets.

SAMA explores in detail the various aspects of a government-issued digital currency, including the economic impact, market readiness, and applications of a CBDC-based payment solution. In addition, the central bank aims to review the political, legal and regulatory aspects of the use of CBDCs.

However, SAMA’s CBDCThe attempt to explore ‘s in more detail is also part of Saudi Vision 2030. Saudi Vision 2030 is an initiative to reduce the UK’s dependence on oil, diversify its economy and develop public service sectors such as health, education, infrastructure, recreation and tourism.

According to HE Fahad Almubarak, Governor of the Central Bank of Saudi Arabia, local banks and payment companies CBDC will be heavily involved in the project and its implementation.

Saudi Arabian Central Bank continues its CBDC research
HE Fahad Almubarak, Governor of the Central Bank of Saudi Arabia. Source: SAMA

SAMA has done CBDC studies before

The Central Bank launched a project called “Project Aber” in 2019. CBDC successfully carried out the experiment. At the same time, SAMA conducted the Project Aber experiment in collaboration with the Central Bank of the United Arab Emirates. In that experiment, if blockchain It was scrutinized whether the technology would contribute to cross-border payments.

Both banks published a report on the research they carried out at the end of 2020. The report concluded that a bidirectional issuing CBDC is technically suitable for cross-border payments.

So what Saudi Arabiagave no details on the technology behind CBDCs.

On the other hand, the US think tank Atlantic Council announced that CBDCs are currently only available in 11 countries. 17 countries CBDC work is still in the pilot phase.

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