Saudi Arabia Plans To Implement CBDC Without Pressure On Cash

The Saudi Arabian Central Bank (SAMA) said it plans to launch a national digital currency, but does not intend to abandon cash.  

In a statement to local publication Al Eqtisadiaha representative of the Central Bank said that the kingdom is actively exploring the use of innovative technologies, such as blockchain, in the field of finance. One of the priority areas is the development of a central bank digital currency (CBDC). However, the new form of money will not replace cash or affect its issue, but will become an additional waycalculations.

Saudi Arabia is not yet ready to give upphysical carriers of value (paper and metal) due to the insufficiently high level of digital payments. By 2030, the kingdom wants to increase their share to 70%, but SAMA hopes that CBDC will accelerate the transformation of the financial system, and the goal will be achieved five years earlier.

The Central Bank of the country was one of the first to startexperiment with CBDC. Back in 2019, Saudi Arabia launched a project to develop a digital currency for bilateral cross-border payments Aber. A month later, it was joined by the Central Bank of the United Arab Emirates and six commercial banks from Saudi Arabia and the UAE, and in 2020 it was successfully completed.

</p>