The Saudi Central Bank (SAMA) is increasing its research efforts into central bank digital currencies (CBDCs). However, it is still uncertain as to when the currency will be released, as reported by Cointelegraph.
According to Cointelegraph, the bank highlighted the development of a phase of a project “focuses on domestic wholesale CBDC use cases in collaboration with local banks and fintechs.” “SAMA stresses that although no decision has been made regarding the introduction of CBDC in the Kingdom, it continues to focus on exploring the benefits and potential risks of implementing CBDC,” the bank stated.
On the basis of information by Cointelegraph, SAMA is working on details of a state-backed digital currency, along with economic impact, market readiness, and the applications of a CBDC-based payment solution. Reportedly, the initiative belongs to Saudi Vision 2030, which aims to reduce the Kingdom’s dependence on oil, diversify its economy and develop public service sectors such as health, education, infrastructure, recreation, and tourism. H E Fahad Almubarak, governor, SAMA, mentioned that local banks and payment companies will be associated with the CBDC project and implementation.
Moreover, Cointelegraph noted that SAMA completed a CBDC experiment named “Project Aber” in 2019. It is believed that the bank worked in a partnership with the Central Bank of United Arab Emirates (UAE) to understand whether blockchain would benefit cross-border payments.
(With insights from Cointelegraph)