The Central Bank of Saudi Arabia transfers funds to local banks through blockchain

The Saudi Arabian Monetary Authority (SAMA), the country’s central bank, announced that it used blockchain technology to deposit funds in local banks.

An official statement released by SAMA said the funds were part of the bank’s initiative to enhance its „capacities to continue its role in providing credit services. The bank did not specify the exact amount of the fund transfer.

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SAMA’s involvement with blockchain technology
The Middle East is seeing widespread adoption of blockchain technology in the financial sector. SAMA has had a tremendous performance in terms of blockchain use for remittances for banks located in Saudi Arabia and the United Arab Emirates.

In 2018, SAMA also partnered with the UAE Central Bank to develop a digital currency that can be used for cross-border transactions between the two countries.

First German-Turkish trade finance transaction using distributed record book technology
Reflecting on its recent transaction and active participation in the blockchain space, SAMA’s recent announcement stated

„SAMA is one of the central bankers who pioneered the experiment [with] blockchain technology for money transfers, this move is one of the key innovative initiatives launched by SAMA in its programme to enable and develop Fintech in the UK.

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Blockchain in finance

The increased involvement of governments and central banks in the blockchain sector is playing an important role in the adoption of financial technology.

Today, Cointelegraph reported that a major Turkish bank completed its first blockchain-based trade finance transaction. Another report cited that nearly 40% of financial technology companies operating in Hong Kong were using distributed registration technology.

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