Saudi Central Bank Mulls Blockchain for Finance, Rejects Phasing Out Cash: Report

Saudi Arabia was one of the first countries to experiment with a CBDC.

By Eliza Gkritsi

Oct 25, 2021 at 4:19 a.m. UTC

Riyadh, Saudi Arabia. (Ekrem Osmanoglu/Unsplash)

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Eliza Gkritsi

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Follow @egreechee on Twitter

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Saudi Arabia’s central bank is experimenting with emerging technologies like blockchain for the finance sector, but doesn’t intend to phase out cash in favor of digital payments, according to an interview with local newspaper Al Eqtisadiah.

Central bank digital currencies (CBDCs) are one of the most important financial technologies under development, but the kingdom does not intend to phase out the use of physical cash, according to a central bank representative quoted in the report.
The central bank was one of the first in the world to experiment with CBDCs back in 2019 when it announced project Aber, a bilateral experiment with the U.A.E. to test the use of digital ledgers on cross-border transactions.
Saudi Arabia is trying to increase the proportion of electronic payments to 70% of the country’s total by 2030, but the kingdom wants to ensure continuity of cash transactions and the availability and acceptance of paper and metal cash as a means of payment, according to the interview.
The representative said the target is likely to be achieved five years earlier, in 2025.
The U.A.E. are now working on another cross-border CBDC project with China, Thailand, and Hong Kong.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Eliza Gkritsi

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Follow @egreechee on Twitter

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Eliza Gkritsi

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Follow @egreechee on Twitter