Local banks in Saudi Arabia have received money from their central bank through blockchain technology.
The Central bank of Saudi Arabia is known as the Saudi Arabian Monetary Authority (SAMA). SAMA made the announcement about its use of blockchain to send money to banks within the country.
The monies sent were to help in supporting their activities. The amount sent to the banks was not disclosed.
How SAMA embraces blockchain technology
Countries in the Middle East are beginning to accept blockchain technology in their financial institutions. SAMA has consistently sent money to local banks using blockchain technology. Apart from banks in Saudi Arabia, SAMA also remits funds to banks in UAE with the use of blockchain technology.
Last two years, SAMA and the Central Bank of UAE also teamed up to create a digital currency which could be used by the two Middle East states.
After the transfer of funds, a representative of the central bank stated:
“SAMA is one of the pioneer central banks to experiment [with] blockchain technology for money transfers, this move is one of the key innovative initiatives launched by SAMA in its program to enable and develop Fintech in the Kingdom.”
Adding blockchain to finance
Some governments and central banks are deliberately using blockchain technology so that it can be quickly adopted across the financial sector
In Turkey, a bank used blockchain technology to send money for an international trade. In Hong Kong, it has been reported that about 4 out of 10 financial technology firms use DLT.