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The new CBDC project phase focuses on “domestic wholesale CBDC use cases.”
Saudi Central Bank (SAMA)formerly known as the Saudi Arabian Monetary Authority, continues to work on the central bank digital currency (CBDC) and starts a new phase of its project.
According to pers conference distributed on January 23, In this phase of the project, SAMA will work closely with local banks and fintechs to test “domestic wholesale CBDC” use cases.
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Moreover, in the newly launched project phase, SAMA hopes to research market readiness, CBDC’s economic impact, and “the potential for robust and rapid application of CBDC-based payment solutions.”
In addition, SAME plans to review regulatory, legal, and policy considerations before moving a CBDC project to the next phase. SAME highlights that it will aim to ensuring that its CBDC project “contributes to achieving the goals of the Saudi Vision 2030.”
It should be noted that Saudi Arabia’s Saudi Vision 2030 initiative, aims to diversify the country’s economy, reduce its dependence on oil and develop the education, health, tourism, infrastructure and leisure sectors.
SAMA Governor Fahad Almubarak highlighted this local banks and payments companies will always play a critical role in the creation and implementation of CBDCs. Nonetheless, Governor SAMA stated that several local banks, fintechs, market players, and third-party technology providers were actively testing various CBDC design options.
In the press release, The Saudi Central Bank highlighted that the regulator has yet to make a decision regarding the launch of the CBDC.
SAMA emphasizes that although no decision has been made regarding the introduction of a CBDC in the Kingdom, it continues to focus on exploring the benefits and potential risks of implementing a CBDC.
Even so, SAMA claims it the project “will contribute to informed decision making in SAMA and exploration of CBDCs within the central banking community.”
The Saudi Central Bank is not the only bank conducting some tests of its central bank digital currency. At the end of December, The Central Bank of the Republic of Turkey completed its first series of tests for its CBDC.
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