The Kingdom of Saudi Arabia is reportedly planning to launch its own digital currency next year, according to Mohsen Al Zahrani, the Innovation Center (SPARC) director at Saudi Arabia’s Monetary Authority (SAMA), the country’s financial regulator.
On Monday (November 19th), Mubarak Rashed Al-Mansouri, the governor of UAE’s central bank, said that the state-backed cryptocurrency had already entered its design phase.
Cryptocurrency Will Be Used For Bank-To-Bank Cross-Border Payments
The Saudi Press Agency revealed on Tuesday that Saudi Arabia will be developing its national cryptocurrency through a collaborative effort with the United Arab Emirates (UAE). At present, Saudi Arabia has put together a research team that is looking into what may be required to launch a national digital currency.
Saudi Arabia’s authorities intend to use the state-backed cryptocurrency to conduct faster and more cost-effective cross-border payments. Moreover, the digital currency will mainly be used for bank-to-bank transactions.
Al-Mansouri explained that Saudi Arabia had decided to launch its own digital currency because the country wants to adopt the latest financial technology. However, the governor said there are many challenges that lie ahead – including ensuring consumer protection.