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Saudi Arabia uses blockchain to transfer funds into local banks

Saudi Arabia blockchain
The move was a part of the Saudi central bank’s plan to explore latest technological innovation

The Saudi Arabian central bank has revealed that it used blockchain technology to transfer funds into its domestic banks, as a part of its efforts to explore emerging technology, the media reported.

Saudi Arabia announced that it will inject around $13.3 billion into its banking sector to help it weather the coronavirus pandemic. The Saudi Arabian Monetary Authority (SAMA) has been supporting local banks as they seek to resume normal operations following the COVID-19 pandemic.

Recently, Saudi Arabia pumped the $13.3 billion into its banking sector by using blockchain technology.

In a statement, SAMA said, “This action comes as a part of SAMA’s continues efforts in exploring and experimenting with emerging technologies and keeping lead pace with the global trends of central banks in assessing the impacts of such technologies on the financial sector.”

Michael O’Loughlin, a financial expert and Forbes contributor believes the use of blockchain is a huge step in the right direction for SAMA as central banks around the world are engaging in blockchain-related research.

“Blockchain technology if implemented properly has the potential to improve banking operations significantly,” he told the media.  Blockchain can lead to increased security, optimise the ability to track and trace money, and also efficiency in the banking sector.

Reduced fraud, increased security and quick and hassle-free transactions are what banks want, customers want the same thing too. Blockchain promises to deliver just that, after 10 years of proofs of concept, the world is ready to see financial services embrace the tech” O’Loughlin added.

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