Saudi Central Bank still researching CBDC, but no decision on deployment

The Saudi Central Bank (SAMA) is ramping up its probe into Central Bank Digital Currencies (CBDCs) but is yet to denote a deployment.

In a Jan. 23 bulletin, the slope stated it was moving connected a signifier of a task that “focuses connected home wholesale CBDC usage cases successful collaboration with section banks and fintechs.”

However, it confirmed determination had been nary last determination to motorboat specified a integer currency successful the Middle Eastern nation.

“SAMA stresses that though nary determination has been made regarding the instauration of CBDC successful the Kingdom, it continues to absorption connected exploring the benefits and imaginable risks of implementing CBDC.”

SAMA is researching respective aspects of a state-issued integer currency including economical impact, marketplace readiness, and the applications of a CBDC-based outgo solution. It besides intends to reappraisal policy, legal, and regulatory considerations.

The determination is portion of Saudi Vision 2030, an inaugural to trim the Kingdom’s dependence connected oil, diversify its system and make nationalist work sectors specified arsenic health, education, infrastructure, recreation, and tourism.

According to SAMA governor, H.E. Fahad Almubarak, section banks, and outgo companies volition beryllium heavy progressive successful the CBDC task and implementation.

Official representation of SAMA governor, H.E. Fahad Almubarak. Image: SAMA

SAMA successfully conducted a CBDC experimentation called “Project Aber” successful 2019. It worked successful collaboration with the Central Bank of the United Arab Emirates (UAE) to analyse whether blockchain exertion could lend to cross-border payments.

The banks released a study connected their findings successful precocious 2020 concluding a dual-issued CBDC was technically viable for cross-border payments and presented “significant betterment implicit centralized outgo systems successful presumption of architectural resilience.”

Related: Survey reveals precocious penetration and adoption of crypto successful Saudi Arabia

No details were provided connected the exertion down the Saudi CBDC, but CBDC Tracker suggests it is based connected the Linux Foundation's Hyperledger Fabric.

According to the United States deliberation convey Atlantic Council, determination are presently 11 countries that person afloat deployed a CBDC, and 17 are moving pilots. Most of those that person launched are successful the Caribbean with the objection of Nigeria.