{"id":16977,"date":"2023-01-27T14:46:46","date_gmt":"2023-01-27T14:46:46","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/saudi-central-bank-says-ongoing-cbdc-experiment-focused-on-domestic-wholesale-use-cases-fintech-bitcoin-news\/"},"modified":"2023-01-27T14:46:46","modified_gmt":"2023-01-27T14:46:46","slug":"saudi-central-bank-says-ongoing-cbdc-experiment-focused-on-domestic-wholesale-use-cases-fintech-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/saudi-central-bank-says-ongoing-cbdc-experiment-focused-on-domestic-wholesale-use-cases-fintech-bitcoin-news\/","title":{"rendered":"Saudi Central Bank Says Ongoing CBDC Experiment Focused on Domestic Wholesale Use Cases \u2013 Fintech Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

Saudi Arabia\u2019s central bank digital currency (CBDC) experiment, which is being carried out in conjunction with local banks and fintechs, is presently focused on domestic wholesale uses cases, the central bank has said. Meanwhile, the Saudi Minister of Finance has said CBDCs can be a \u201cfantastic tool\u201d which can be used by developing countries as a \u201csocial safety net.\u201d<\/strong><\/p>\n

Local Banks and Fintechs Central to Saudi Arabia\u2019s Digital Currency Project<\/h2>\n

The Saudi Central Bank (SAMA) has said its digital currency experiment is ongoing and is presently focused \u201con domestic wholesale CBDC [central bank digital currency] use cases in collaboration with local banks and fintechs.\u201d Also, during this testing phase, SAMA will examine a CBDC-based payment system\u2019s likely impact on the economy as well as the market\u2019s readiness.<\/span><\/p>\n

Outlining the central bank\u2019s CBDC approach, Fahad Almubarak, the governor of SAMA, claimed that local banks and payment companies \u201cwill always be a cornerstone of this project and its implementation.\u201d To support this claim, a statement issued by the central bank on Jan. 23 states that SAMA has already engaged local banks, fintechs, and technology providers as it seeks to better understand the functions of a CBDC as well as the different design options available.<\/span><\/p>\n

Although SAMA has vowed to continue its research on CBDCs, it nonetheless emphasized in the statement that \u201cno decision has been made regarding the introduction of CBDC in the Kingdom.\u201d According to the statement, SAMA wants to make an informed decision thus it intends to continue \u201cexploring the benefits and potential risks of implementing CBDC.\u201d<\/span><\/p>\n

CBDCs Require Compromise on Privacy<\/h2>\n

Despite the central bank\u2019s seemingly cautious approach, the country\u2019s Minister of Finance Mohammed Al-Jadaan recently lauded CBDCs which he sees as a useful tool for developing countries. As per his remarks during a World Economic Forum session<\/a>, the Saudi minister also sees CBDCs being used to further social agendas.<\/span><\/p>\n

\u201cFor me, I think CBDCs, at least for developing nations, would be a fantastic tool to provide for example social safety net,\u201d Al-Jadaan said. <\/span><\/p>\n

However, the Saudi minister did acknowledge that while CBDCs can achieve much, it will be at a cost \u2014 a compromise on privacy.<\/p>\n

Meanwhile, in its statement, the Saudi central bank said the ongoing CBDC experiment will also examine the possibility of using the digital currency as \u201can infrastructure enabler of innovation in financial services that has the potential to contribute to a more resilient payment ecosystem.\u201d<\/span><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

\n
\n<\/div>\n
\n
\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

\n
\n
\n<\/a>
\n<\/span>
\n
\n
\n
\n<\/a>
\n<\/span>
\n
\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n