Written by: FIMA Plus
The Saudi Arabian Monetary Authority (SAMA), the country’s central bank, announced yesterday that it has recently injected a portion of liquidity into local banks through blockchain technology. The exact amount of liquidity that SAMA injected via blockchain is not known, but last week the central bank decided to inject a total of 50 billion Saudi riyals (~ 13.35 billion USD) to enable banks to support the private sector.
SAMA stated that the development of blockchain is part of their ongoing efforts to explore and experiment with new technologies. Specific details of this initiative remain unknown. The central bank has not yet commented.
This is not the first time SAMA has experimented with blockchain technology
Last year, it launched a digital currency project called Aber in collaboration with the central bank of the United Arab Emirates to assist banks in both countries in issuing remittances via blockchain. Additionally, in 2018, SAMA partnered with Ripple to help local banks enhance their payment infrastructure through RippleNet.
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