The Governor of the Saudi Central Bank, Fahd Al-Mubarak, said that his country seeks to establish a low-cost digital central bank that simulates digital operations, provided that it has real financial liquidity retained.
Al-Mubarak added, during the Forum of the Future Investment Initiative in Saudi Arabia, today, Tuesday, that the Kingdom is working on an experiment to launch a huge project with the UAE in this regard, without further details.
He explained that the current virtual currencies "pose a risk with their suspicious transactions and the lack of a guarantor for them."
In 2019, the Saudi Central Bank and its UAE counterpart launched a project to issue a common digital currency, which was used experimentally between the two countries in financial settlements through blockchain technologies.
The digital transformation of banking transactions and even the entities themselves has become one of the priorities of the banking industry around the world, as part of efforts to transform payment systems between borders into digital transactions.
Last June, the Saudi government authorized two digital banking licenses: STC Bank (under formation) and Saudi Digital Bank (under formation).
The Saudi Finance Minister, Muhammad Al-Jadaan, said at the time that the approval came within the objectives of the Financial Sector Development Program, which is part of a huge economic reform plan known as the Kingdom’s Vision 2030.
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