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The central bank of Saudi Arabia transfers funds to local banks via blockchain

June 8, 2020

The Saudi Arabian Monetary Authority (SAMA), The country’s central bank announced that it is using blockchain technology to deposit funds at local banks.

An official statement released by SAMA said the funds were part of the bank’s initiative to improve its “ability to continue its role in providing credit services.”. The bank did not specify the exact amount of the transfer.

SAMA’s participation in blockchain technology

Blockchain technology is widespread in the financial sector in the Middle East. SAMA has achieved tremendous performance in using blockchain for bank transfers in Saudi Arabia and the United Arab Emirates.

The central bank of Saudi Arabia transfers funds to local banks via blockchainThe central bank of Saudi Arabia transfers funds to local banks via blockchain

In 2018 SAMA has also partnered with the UAE’s central bank to develop a digital currency that can be used for cross-border transactions between the two countries.

Regarding his recent transaction and active participation in the blockchain space, the latest SAMA announcement stated:

“SAMA is one of the pioneering central banks that are experimenting [con] Blockchain technology for money transfers is one of the most important innovative initiatives that SAMA has launched in its program to enable and develop fintech in the Kingdom. “

Blockchain in finance

The increased involvement of governments and central banks in the blockchain sector plays an important role in the introduction of financial technology.

Cointelegraph reported today that a major Turkish bank has completed its first blockchain-based international trade finance transaction. Another report cited that nearly 40% of Hong Kong’s financial technology companies use distributed ledger technology.