The central bank of Saudi Arabia has revealed that it used blockchain technology to inject liquidity into its banking sector. This was part of the central bank’s efforts to explore emerging technology. The Saudi Arabian Monetary Authority (SAMA) has been supporting local banks as they seek to resume normal operations following the COVID-19 pandemic. In its most recent gesture, it pumped $13.3 billion into its banking sector. Part of this liquidity injection was deployed through blockchain technology, the central bank revealed.
SAMA continues to experiment with emerging technologies.
This action comes as a part of SAMA’s continuous efforts in exploring and experimenting with emerging technologies and keeping lead pace with the global trends of central banks in assessing the impacts of these technologies on the financial sector. The central bank of Saudi Arabia has touted itself as one of the pioneer central banks in using blockchain technology for funds transfers. Last year Saudi Arabia and the UAE partnered in a digital currency-powered cross-border funds transfer initiative. The project was made possible by the partnership between SAMA and the UAE Central Bank.
Blockchain adoption increases amid the global pandemic.
The leading international bank in Saudi Arabia, SABB, arranged a workshop for the country’s largest importers and exporters last year. Saudi Arabia British Bank believes that blockchain has the potential to transform business in Saudi Arabia. The bank believes that the integration of blockchain technology would help businesses to reduce paperwork and trade more securely and efficiently. UK-based Bolero International, a global trade solution company, partnered with SABB to introduce blockchain in the country for international business.
In the midst of the global pandemic, the use cases of blockchain technology have been acknowledged by governments and private companies all over the world. The US Senate also proposed to use blockchain technology for remote voting amid the global pandemic.