Saudi Central Bank explores the economic impact of a digital riyal

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(Kitco News) - The Saudi Central Bank (SAMA) has provided an update on its exploration of the creation of its own central bank digital currency (CBDC) – the digital riyal – saying that it continues to focus on the development of a domestic wholesale CBDC (wCBDC) use case in collaboration with local banks and fintechs.

“During this phase of the project, SAMA seeks to explore CBDC economic impact, market readiness, and potential robust and fast applications of a CBDC-based payment solution,” the central bank said.

SAMA is also in the process of reviewing policy, legal and regulatory considerations before it moves on to the next phases of its CBDC investigation within the context of the objectives of Saudi Vision 2030. The goal of the SV 2030 initiative is to reduce the kingdom’s dependence on oil, diversify its economy and develop public service sectors such as health, education, infrastructure, recreation and tourism.