Saudi Arabia plans to launch its own cryptocurrency next year

The Kingdom of Saudi Arabia is reportedly planning to launch its own digital currency next year, according to Mohsen al-Zahranite, director of the Innovation Center (SPARC) in Saudi Arabia Monetary Authority (CAM), the country's financial regulator.

On Monday (November 19), the governor of the central bank of the United Arab Emirates, Mubarak Rashed Al-Mansuri, said that the state-supported cryptocurrency has already entered the design phase.

Cryptocurrency will be used for interbank payments Bank-To-Bank
The Saudi Republican Agency reported on Tuesday that Saudi Arabia will develop its national cryptocurrency in a joint effort with the United Arab Emirates (UAE). Currently, Saudi Arabia has gathered a research group that is exploring what may be needed to create a national digital currency.

Saudi Arabian authorities intend to use state-supported cryptocurrency to make faster and more cost-effective cross-border payments. Moreover, the digital currency will be mainly used for banking transactions.

Al-Mansuri explained that Saudi Arabia decided to launch its own digital currency because the country wants to adopt the latest financial technology. However, the governor said that many challenges lie ahead, including ensuring consumer protection.

Confidence that the new cryptocurrency complies with the financial regulations
He recommended that the regulators of the financial market of Saudi Arabia and the UAE consider the regulatory requirements for the introduction of a new currency, which will serve as a legal and official average exchange (MOC).

As reported by CryptoGlobe in August, the Saudi Arabian Standing Committee, which oversees securities transactions in the Kingdom’s foreign exchange market, confirmed that trading or circulation (in some other way) in Bitcoin (BTC) and other cryptocurrencies is illegal.

Saudi regulators clarified their position regarding the use of digital currencies after several websites and social media accounts stated that they were “allowed” to provide cryptographic services in the kingdom.

Saudi Arabia has banned decentralized digital currencies
In response to these false allegations, the Saudi Arabian Standing Committee stated that “no party or individual has a license to do this.” Given the position of a Middle Eastern country in relation to decentralized cryptotermings, Saudi Arabia can only begin to use digital currency to increase the efficiency of the state-controlled financial system.

Meanwhile, the UAE is seeking to adopt blockchain technology, since its financial center, Dubai, plans to use a distributed register for 50% of its transactions by 2021.

ADAB Solutions, a financial services company based in the UAE, also launched the world's first Islamic cryptocurrency exchange (FICE). The exchange is said to be consistent with the Shari'a, which means that its services will be consistent with Islamic law.