Fun

Saudi Central Bank Says Ongoing CBDC Experiment Focused on Domestic Wholesale Use Cases

News Feed - 2023-01-27 08:01:44

Saudi Central Bank Says Ongoing CBDC Experiment Focused on Domestic Wholesale Use Cases


Saudi Arabia’s central bank digital currency (CBDC) experiment, which is being carried out in conjunction with local banks and fintechs, is presently focused on domestic wholesale uses cases, the central bank has said. Meanwhile, the Saudi Minister of Finance has said CBDCs can be a “fantastic tool” which can be used by developing countries as a “social safety net.” Local Banks and Fintechs Central to Saudi Arabia’s Digital Currency Project


The Saudi Central Bank (SAMA) has said its digital currency experiment is ongoing and is presently focused “on domestic wholesale CBDC [central bank digital currency] use cases in collaboration with local banks and fintechs.” Also, during this testing phase, SAMA will examine a CBDC-based payment system’s likely impact on the economy as well as the market’s readiness.


Outlining the central bank’s CBDC approach, Fahad Almubarak, the governor of SAMA, claimed that local banks and payment companies “will always be a cornerstone of this project and its implementation.” To support this claim, a statement issued by the central bank on Jan. 23 states that SAMA has already engaged local banks, fintechs, and technology providers as it seeks to better understand the functions of a CBDC as well as the different design options available.


Although SAMA has vowed to continue its research on CBDCs, it nonetheless emphasized in the statement that “no decision has been made regarding the introduction of CBDC in the Kingdom.” According to the statement, SAMA wants to make an informed decision thus it intends to continue “exploring the benefits and potential risks of implementing CBDC.”


CBDCs Require Compromise on Privacy


Despite the central bank’s seemingly cautious approach, the country’s Minister of Finance Mohammed Al-Jadaan recently lauded CBDCs which he sees as a useful tool for developing countries. As per his remarks during a World Economic Forum session, the Saudi minister also sees CBDCs being used to further social agendas.


“For me, I think CBDCs, at least for developing nations, would be a fantastic tool to provide for example social safety net,” Al-Jadaan said.


However, the Saudi minister did acknowledge that while CBDCs can achieve much, it will be at a cost — a compromise on privacy.


Meanwhile, in its statement, the Saudi central bank said the ongoing CBDC experiment will also examine the possibility of using the digital currency as “an infrastructure enabler of innovation in financial services that has the potential to contribute to a more resilient payment ecosystem.” Tags in this story CBDC, CBDC risk, CBDCs risks, financial innovation, Fintech, Mohammed Al-Jadaan, Privacy, Saudi Central Bank (SAMA)


What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Bank of Spain Greenlights Euro-Backed Stablecoin Token Pilot Program FINTECH | 5 days ago Kenyan Fintech Kwara Raises $3 Million in Seed Extension FINTECH | 6 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFTX and Alameda Research Collapse Sad Event but ‘Good for the Long Run’ Says DWF Labs Managing Partner Next articleHow to Give Bitcoin or Another Cryptocurrency as a Gift Using BitCard Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand"


Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. "We continue to see demand, particularly from young investors, for access ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method

News Feed

Why are BTC traders bearish above $64K? 5 things to know in Bitcoin this week
William Suberg38 minutes agoWhy are BTC traders bearish above $64K? 5 things to know in Bitcoin this weekBitcoin is approaching price discovery — but traders and analysts are upping bets on a BTC price correction.1276
Thailand Announces Cryptocurrency Will Be Regulated as Means of Payment
Thailand Announces Cryptocurrency Will Be Regulated as Means of Payment Thailand has announced that cryptocurrency will be regulated as a means of payment for goods and services &#
Bitcoin and altcoins fail to rally even as US inflation cools down
Marcel Pechman5 hours agoBitcoin and altcoins fail to rally even as US inflation cools downFor years, analysts and traders have said cooling inflation would benefit the crypto market, yet prices are still down. Cointeleg
Authy 2FA app leaked phone numbers that may be used for text phishing
Christopher Roark3 hours agoAuthy 2FA app leaked phone numbers that may be used for text phishingTwilio, the developer of the Authy authenticator app, said user phone numbers were leaked to attackers but accounts themsel
BOSO TOKYO Looks to Bring Japanese Culture to the World via Innovative Use of Metaverse Capabilities
BOSO TOKYO Looks to Bring Japanese Culture to the World via Innovative Use of Metaverse Capabilities sponsored Everyone would agree that the DeFi industry is absolutely booming righ
Binance Licensed in Kazakhstan as Provider of Crypto Exchange and Custody Services
Binance Licensed in Kazakhstan as Provider of Crypto Exchange and Custody Services Authorities in Kazakhstan have granted Binance a license to operate as a digital asset platform a
FBI Helps to Train Nigerian Crypto Crime Investigators
FBI Helps to Train Nigerian Crypto Crime Investigators The United States government through the FBI recently helped to run a training exercise whose goal is to e
Tom Mitchelhill7 hours agoIRS investigating crypto traders using Puerto Rico tax breaks: Report“The noose is tightening” for wealthy Americans suspected of exploiting Puerto Rico’s relaxed tax regime.3477 Total vie
Ethereum Breakdown: Analyst Eyes $1,200 Price Target
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin’s Unknown Creator Satoshi Nakamoto Is Now the 20th Wealthiest Person on Earth
Bitcoin"s Unknown Creator Satoshi Nakamoto Is Now the 20th Wealthiest Person on Earth In mid-April the creator of the Bitcoin network, Satoshi Nakamoto entered the world’s t
The Ongoing Effort to Free Ross — Ulbricht’s Clemency Petition Closes in on Half a Million Signatures
The Ongoing Effort to Free Ross — Ulbricht"s Clemency Petition Closes in on Half a Million Signatures As the end of 2021 nears, Ross Ulbricht remains in prison as he continues to
Mila Kunis’ ‘Stoner Cats’ NFT Sale Pulls in $8M — Animated Series Can Only Be Watched by NFT Holders
Mila Kunis" "Stoner Cats" NFT Sale Pulls in $8M — Animated Series Can Only Be Watched by NFT Holders A new non-fungible token (NFT) project crafted by the Amer