Central Bank of Saudi Arabia Employed Blockchain-based Solution for Funds Reallocation

By Chris Torres | June 9, 2020

The Saudi Arabian Monetary Authority (SAMA) has reportedly employed a blockchain-based approach for the reallocation of funds to local banks. 

Specifically, SAMA reportedly disclosed that said funds are an attempt from the bank to improve its “capabilities to continue its role in providing credit facilities”. The details to the actual value of the funds are reportedly not revealed. 

The blockchain adoption rate throughout the Middle East is reportedly experiencing a surge, particularly in the finance industry. SAMA has reportedly put in extra resources to promote the use of blockchain for remittances, to banks headquartered in Saudi and the United Arab Emirates.

In 2018, SAMA has teamed up with the UAE’s central bank to roll out a cryptocurrency, acceptable for facilitating cross-border transactions from-nation-to-nation. 

“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.” SAMA further stated regarding their initiatives across the blockchain sphere. 

Additional presence of governments and central banks in the blockchain industry is reportedly having a positive impact, in terms of the technology in finance.

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