Hey Peeps!
On January 23rd, the Saudi Central Bank (SAMA) of Saudi Arabia announced, via a press release, that they will be moving forward with an experimental CBDC program.
Originally called the Saudi Arabian Monetary Authority, SAMA changed it's name to Saudi Central Bank in 2020, but continues to use the same acronym.
SAMA stated that the project is currently in a phase "that focuses on domestic wholesale CBDC use cases in collaboration with local banks and fintechs".
The Riyadh-based bank says they are exploring the benefits and risks of a CBDC-based payment solution.
"Local banks and payment companies will always be a cornerstone of this project and its implementation."
- Fahad Almubarak, Governor of SAMA
"SAMA is set to continue with its research on CBDC while consulting with relative international bodies, local government entities and public. Additionally, SAMA will continue to experiment on CBDC solution as an infrastructure enabler of innovation in financial services that has the potential to contribute to a more resilient payment ecosystem and accelerate digital transformation in the local financial sector."
- Saudi Central Bank (SAMA)
The press release went on to mention the success of a previous CBDC program in 2019 called "Project Aber".
Project Aber was a collaboration between SAMA and the Central Bank of the UAE to "examine whether distributed ledger technology could contribute to seamless cross-border payments".
Despite the announcement of the CBDC program and the future plans, SAMA would like to stress that no decision has been made regarding the introduction of a CBDC in Saudi Arabia.
I guess only time will tell if this CBDC ever materializes or not.
However, I would find it very strange to announce something and then hint that it might not happen.
What are your thoughts on this news?
Do you think we will ever see this CBDC?
Will Saudi Arabia be a big player in the future crypto world?
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