Saudi Arabia uses Blockchain to make transfers to local banks

The Saudi Arabian Monetary Authority (SAMA), the country’s central bank, announced in an official statement that it used Blockchain technology to deposit funds in local banks, injecting liquidity into the banking sector.

It is clear that Saudi Arabia is among the leading countries that are constantly exploring new technologies. On this occasion, SAMA decided to follow in the footsteps of other central banks, evaluating the impact of such technologies on the financial sector.

SAMA became one of the pioneers in using Bitcoin Loophole to transfer funds to central banks, and they plan to remain at the forefront.

This initiative is part of their determination to boost the Fintech (financial services through new technologies) industry in Saudi Arabia. This is explained in the statement:

„The Saudi Arabian Monetary Authority (SAMA) has recently used the Blockchain technology to deposit some of the liquidity that SAMA had previously announced, being injected into the banking sector. This is part of SAMA’s efforts to improve the sector’s ability to continue its role in providing credit facilities“.

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Recently, the Middle East has been subject to the growing adoption of the use of Blockchain in the financial arena.

SAMA stands out in this, as it has benefited from Blockchain for cross-border payments with local banks in Saudi Arabia and the United Arab Emirates. In addition, in 2018, they partnered with the UAE Central Bank to develop a digital currency for these transactions.

Other countries besides Saudi Arabia, such as Bahrain, also employ the use of Blockchain technology in their economy.

In 2018, Bahrain’s regulators are preparing to establish regulation of digital assets. They also worked closely with the government and the financial services sector to attract Blockchain talent from around the world.

Bahrain has also launched a regulatory sandbox (controlled testing ground where new financial services can be tested with a special set of rules) to attract new Blockchain companies.

The presence of this technology is such that even the University of Bahrain issues diplomas using it. This small island is a true leader in economics and innovation, not only for the region, but for the whole world.

It is clear that the involvement of central banks and governments in Blockchain is an important and positive factor in the adoption of the Fintech industry.

There is no doubt that countries like Saudi Arabia, Bahrain and the United Arab Emirates are champions in this. Global regulators need to pay attention to them, and take notes.

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