The Saudi Central Bank is ramping up its research into central bank digital currencies but is yet to announce a deployment.
The bank stated it was working on a phase of a project that focuses on domestic wholesale CBDC use cases in collaboration with local banks and fintechs. However, it confirmed there had been no final decision to launch such a digital currency in the Middle Eastern nation.
SAMA is researching several aspects of a state-issued digital currency including economic impact, market readiness and the applications of a CBDC-based payment solution. It also intends to review policy, legal and regulatory considerations.
The move is part of Saudi Vision 2030, an initiative to reduce the kingdom’s dependence on oil, diversify its economy and develop public service sectors such as health, education, infrastructure, recreation and tourism.
According to SAMA governor H.E. Fahad Almubarak, local banks and payment companies will be heavily involved in the CBDC project and implementation.
SAMA successfully conducted a CBDC experiment called Project Aber in 2019. It worked in collaboration with the Central Bank of the United Arab Emirates to examine whether blockchain technology could contribute to cross-border payments.
