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Central Bank of Saudi Arabia Will Place Liquid Funds In Local Banks Using Blockchain

Anna Martynova

The Saudi Arabia Monetary Authority (SAMA), the central bank of the country, announces that it uses blockchain technology to place funds in local banks. According to the official statement these funds are part of the bank’s initiative to expand its ability to continue to play a role in the provision of credit lines. The exact amount of funds are not specified.

In the Middle East, the use of blockchain technology in the financial sector is widespread. SAMA has made tremendous success in terms of using blockchain for money transfers 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.

Today it also became known that a large Turkish bank has completed the first international blockchain-based trade finance transaction. Another report says that nearly 40% of fintech firms operating in Hong Kong use DLT.

Image courtesy of Blocksats

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