Saudi Arabia Aims to Establish Digital Central Bank

Saudi Arabia Aims to Establish Digital Central Bank

Saudi Central Bank (SAMA) announced that the Kingdom is striving to establish a low-cost digital central bank that simulates digital operations on the occasion of the cabinet's decision to approve the payments and its services law.

SAMA governor Fahad al-Mubarak noted that the approval underscores the leadership's keenness to support the development of the financial sector and maintain fairness and stability of transactions.

The provisions of the law will enable SAMA to exercise its supervisory oversight of the payments sector in Saudi Arabia, following the international best practices and compliance standards.

Mubarak pointed out that the law seeks to enhance the integrity and adequacy of the payment systems' infrastructure and services in the Kingdom by upgrading the regulatory and supervisory frameworks.

He added that the law would foster payment systems' safety and efficiency to serve local customers and create attractive investment opportunities in line with Vision 2030.

Addressing a session at the Future Investment Initiative (FII), Mubarak said that the Kingdom is striving to establish a low-cost digital central bank that simulates digital operations, which would hedge against the real liquidity maintained in central banks.

"The Kingdom has a cross-digital currency project with the UAE, and there is a large project for financial technology in Saudi