KSA Injects Nitro on CBDC Study. Plans to Rely Less on Oil

Saudi-Arabia-Takes-Affirmative-Action-for-Crypto-Adoption
  • Saudi Central Bank is intensifying its study of Central Bank Digital Currencies (CBDCs)
  • SAMA collaborates with local fintech that focuses on domestic CBDC use cases.
  • The move is a component of Saudi Vision 2030

The Saudi Central Bank (SAMA) is intensifying its study of Central Bank Digital Currencies (CBDCs), but has not yet announced a deployment.

The move is a component of Saudi Vision 2030, a plan to lessen the kingdom’s reliance on oil, diversify its economy, and grow public service sectors, including health, education, infrastructure, recreation, and tourism.

The bank announced it was collaborating with local banks and fintech on a phase of a project that focused on domestic wholesale CBDC use cases. Consequently, local banks and payment providers will play a significant role in the CBDC initiative and its execution.

However, it was verified that no final decision had been made to introduce a digital currency in the Middle Eastern country.

SAMA is researching numerous facets of a state-issued digital currency, such as its economic impact, market readiness, and applications for a CBDC-based payment solution. It also plans to examine policy, legal, and regulatory factors.

In 2019, SAMA successfully executed “Project Aber,” a CBDC experiment. It examined with the Central Bank of the United Arab Emirates (UAE) whether blockchain technology may contribute to international payments.

In related news, the European Union imposes stringent cryptographic regulations on banks. The European Union makes an unexpected revelation that puts the majority of the Twitter crypto community in shock. 

Banks must hold one euro of own capital for every euro they hold in cryptocurrencies, according to the announcement. The official decision was made by the Economic and Monetary Affairs Committee of the European Parliament.

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