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.
“We are working on an experiment to launch a huge project with the UAE in this regard,” Al Mubarak added, without further details.
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.
The governor stated that the current virtual currencies pose a risk with their suspicious transactions and the lack of a guarantor for them.
Expat bank license
In another context, the Saudi Cabinet approved licensing Oman’s Sohar International Bank to open a branch in Saudi Arabia.
And according to what was reported by the Saudi Press Agency “SPA”, the Ministry of Finance was authorized to decide on any subsequent request to open other branches of the bank in the Kingdom.
Saudi Arabia has 13 national banks licensed to operate in the country, including two digital, as well as 20 branches of foreign banks.