Saudi Central Bank continues to test its digital currency

Saudi Central Bank continues to test its digital currency

RIYADH: The Saudi Central Bank, also known as SAMA, is carrying out experiments with a central bank digital currency in cooperation with other financial institutions and fintech firms, the Saudi Press Agency reported. The project is in line with measures taken by central banks around the world to issue widely accessible digital coins to ensure privacy and financial security. Central banks started mulling this transition following a rise in the popularity of cryptocurrencies but with a legal cover to curb criminal use of the otherwise unregulated digital currencies. SAMA is currently studying the economic impact, market readiness, and potentially effective and swift applications for payment solutions using digital currency, the SPA report added. The central bank is also seeking to explore policy issues as well as legal and regulatory aspects prior to moving to the next stages of the project. Local banks and payment companies are an indispensable cornerstone of this project and its implementation, according to SAMA Gov. Fahd bin Abdullah Al-Mubarak. It is crucial to involve banks and local fintech firms in the current phase of the project, he noted. He said it is also important to ensure the participation of other market players and third-party advisory and