The Saudi Arabian Monetary Authority (SAMA, for its acronym in English), the country’s central bank, announces in an official statement that it used the technology Blockchain to deposit funds in local banks, injecting liquidity in the banking sector.
It is clear that Saudi Arabia is part of the main countries that constantly explore with new technologies. On this occasion, SAMA decided to follow in the footsteps of other central banks, evaluating the impact of these technologies in the financial sector.
SAMA became one of the pioneers in using Blockchain for the transfer of funds to central banks, and they plan to stay ahead.
This initiative is part of its determination to boost the Fintech industry (financial services through new technologies) in Saudi Arabia. This is explained in the statement:
“The Saudi Arabian Monetary Authority (SAMA) has recently used Blockchain technology to deposit part of the liquidity that SAMA had previously announced, being injected into the banking sector. This is part of SAMA’s actions aimed at improving the sector’s capacities to continue its role in the provision of credit facilities.“
Other Middle Eastern countries also use Blockchain
Recently, the Middle East has been the subject of the increasing adoption of the use of Blockchain in the financial field.
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. Additionally, in 2018, they partnered with the UAE central bank to develop a digital currency for these transactions.
Other countries besides Saudi Arabia, like Bahrain, also employ the use of Blockchain technology in their economy.
In 2018, Bahrain’s regulatory bodies prepared to establish a regulation of digital assets. Also, in close collaboration with the government and the financial services sector, they worked to attract Blockchain talent from around the world.
Bahrain has also launched a sandbox (Controlled testing ground where new financial services can be experimented with a special set of rules) Regulatory to attract new Blockchain startups.
The presence of this technology is so great that even the University of Bahrain issues diplomas using it. This small island is a true leader in economy and innovation, not only for the region, but for the whole world.
It is clear that the participation 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 must pay attention to them, and take notes.
