Saudi Arabia has been continuously exploring the use cases of a CBDC through its central bank, SAMA.
Saudi Arabia recently released a press note announcing that research and experiments on a central bank digital currency (CBDC) are currently underway with an ongoing phase of domestic wholesale use cases of the CBDC in collaboration with banks and fintech companies. The research is under the Saudi Central Bank (SAMA).
“During this phase of the project, SAMA seeks to explore CBDC economic impact, market readiness, and potential robust and fast applications of a CBDC-based payment solution. In addition, SAMA seeks to review policy, legal and regulatory considerations before moving to the next phases of the CBDC journey to contribute to achieving the objectives of Saudi Vision 2030,” stated the official press release. The research is in tune with global initiatives by several countries developing their CBDCs.
SAMA has considered several stakeholders, including local banks, other fintech companies, international bodies, third-party technology providers, and the public. Though a concrete decision regarding the CBDC has not been taken, the country is on course with its research and plans to explore the various benefits of a CBDC. SAMA successfully conducted an experiment called ‘Project Aber’ in 2019, which explored the possibility of cross-border payments with distributed ledger technology.