Saudi Central Bank uses blockchain to provide liquidity to local banks

The Saudi Arabian Monetary Agency (SAMA), the country's central bank, has deposited part ofliquid funds for introduction into local banks through a blockchain-based system.

The Central Bank stated that it will use the technologydistributed ledger (DLT) to inject significant amounts of liquidity into local banks. In particular, SAMA will use blockchain tools to carry out its monetary transactions. Funds will be provided to local banks to help them expand their lending services.

The use of blockchain in the banking sector -part of SAMA’s increased efforts to “research and pilot new technologies.” The central bank is ready to experiment with new technologies in order to keep up with global trends and their impact on the financial sector. The statement said:

“SAMA was one of the first central banks,who are experimenting with blockchain for money transfers. This step was one of the key initiatives launched by SAMA as part of the program to create and develop the fintech industry in the Kingdom. ”

Let us recall that in November last year the SaudiArabia and the United Arab Emirates have confirmed plans to test a joint digital currency and have begun discussing the future course of action for its launch. Additionally, in the same month, companies from Saudi Arabia and Bahrain conducted transactions on the blockchain.

</p></p>