Saudi Central Bank Employs Blockchain

Annabella Cornelly

Blockchain technologies have been gaining popularity all around the globe. More and more countries are ready to utilize the most advanced and innovative approaches and make the majority of routine processes less tedious. Blockchain has helped many central banks to transfer funds in a much shorter time. This way they are becoming more productive and efficient in many other areas of their business.

Saudi Arabia has finally permitted central banks to perform money transactions to local banks via blockchain. The Monetary Authority has already accomplished a procedure – they transferred funds to several local banks utilizing blockchain technology.

The Monetary Authority known as SAMA is the country’s central bank. The organization announced that its system employed the blockchain approach. Their mission was to perform a payment operation and transfer a deposit to a few local banks.

The official representatives made a statement and informed the public about the event. The official statement that SAMA published a report and said that the money was a part of the organization’s initiative to improve and enhance its current features. They need to perfect their capabilities and keep on offering credit facilities. The bank’s representatives did not reveal the exact amount of the deposits they made.

The Authority Is Involved in Blockchain Technology

Many experts are willing to comment and explain why the Monetary Authority of the country is so excited about its involvement with blockchain technology. The Middle East seems to be fully prepared to adopt the most advanced technologies and make their finance sector more efficient. SAMA has achieved great goals so far and their usage of blockchain has spread across many regions in the United Arab Emirates and Saudi Arabia.

Two years ago the Monetary Authority established a partnership with the central bank of the United Arab Emirates. They planned to develop a digital currency that the entire system would apply for cross-border transactions and would help the two countries to make their transfers smoother and faster

The local mass media sources keep track of the recent events and inform the citizens about the opportunities that this kind of technology may bring to their lives. The blockchain space welcomes active involvement and interest in its features. SAMA’s official representatives made a statement where they state that heir organization is one of the most progressive central banks.

They are ready and willing to do experiments to see how blockchain technology can be of use while performing money transfers. SAMA has launched a great initiative that feels innovative and revolutionary. The scheme will be used to develop and enable fintech projects in the entire Kingdom.

Finance Adopts Blockchain

Blockchain technology is essential for finance. Central banks as well as governments are getting involved in the blockchain area. This influences many sectors, including the adoption of blockchain in finance. Recently, Cointelegraph announced that one of the leading banks in Turkey accomplished its first financial transaction related to international trade. The procedure was carried out via blockchain.

Some sources state that approximately forty percent of fintech companies running their businesses in Hong Kong have been applying distributed ledger technology. The areas and sphere where blockchain helps industries have become even wider and its popularity is steadily growing.