- The Saudi Arabian Monetary Authority has empowered local banks to enable them with blockchain technology.
- Banks in Saudi Arabia and the United Arab Emirates are progressing towards this technology at a faster pace.
- Saudi Arabian Monetary Authority (SAMA), has agreed that the funds’ transfer has taken place using blockchain technology.
In one of the finest developments in the digital payments history, the Saudi Arabian Monetary Authority has empowered local banks to enable them with blockchain technology. In an official statement, SAMA has agreed that the funds’ transfer has taken place using blockchain technology. Banks in Saudi Arabia and the United Arab Emirates are progressing towards this technology at a faster pace as compared to other banks revered worldwide.
SAMA has provided a much-needed liquidity injection in the banking sector and additionally left a stamp in the fintech world. The Kingdom has inclined itself with the global financial market. However, Introduced in late 2017, the island country is spearheading the financial technology sector with enthusiasm.
Initiatives have taken to encourage blockchain startups with adequate crypto regulations in place. The new money transfer is a major step towards all-round economic development of the middle-east countries. Further, it has also noted that a total of 50 billion Saudi riyals transferred in a bid to offer a bouquet of digital banking services and payments.
SAMA More Inclined Towards Blockchain
Established in 1952, SAMA enforced with regulating and supervising financial sectors and ensuring the supply of innovative payments system. The transfer was also an aid to the government to combat the pandemic and provide stability to the monetary rules and regulations.
Additionally, To cope with future crises or vulnerabilities, the authority has facilitated the payments to financial institutions in the cities of Makah and Medina. It has by far been the biggest evolution towards economic prosperity and a higher standard of living. The capital adequacy ratio maintained at 18.6%, which is quite phenomenal, given the current scenario prevailing.
Private-sector funding through cryptocurrencies leads to shorter approval times and gives the potential to incentivize participation in the banking sector. Thus, SAMA has reduced frictions and costs associated with a physical cash payment. It will enable bilateral international payments and encourage the use of technology among peer countries.