SAMA says mulling emerging technologies in financial sector, no plans to cancel banknotes

Logo of Saudi Central Bank (SAMA)

The Saudi Central Bank (SAMA) is working currently on studying and experimenting some emerging technologies related to the financial sector, as well as the mechanism of benefiting from these technologies, and analyzing their potential risks, as well as finding appropriate frameworks to manage them before making any relevant decision, Al Eqtisadiah newspaper reported.

The digital currencies of central banks often depend on the use of distributed ledgers and blockchain technologies, to benefit from the advantages of these two technologies.

SAMA is one of the first central banks at the level of the G20 countries to experience these two technologies through "Aber" digital currency project.

The banknote is gaining a legally binding liberating power to repay debts and fulfill obligations, and there are no plans to cancel the banknotes, SAMA stated.

The bank added that it worked on implementing one of the initiatives of the Financial Sector Development Program - one of Vision 2030 programs – as regards moving towards a society less dependent on cash, with the aim raising the percentage of e-payments to 70% of the total payments by 2030.

However, with joint efforts and rapid growth in the digitization of payments, the target date for achieving this percentage has been modified to 2025 instead of 2030.