Saudi Arabia was one of the first countries to try CBDCs. The country is now experimenting with emerging technologies like Blockchain for the central bank finance sector.
Central bank digital currencies (CBDCs) are one of the most important financial technologies under development. According to the Saudi Arabian central bank representative, the kingdom does not intend to abandon the use of physical cash.
Saudi Arabia was one of the first countries in the world to try CBDCs when its central bank announced the Aber project, a dual experiment to test the use of digital ledgers in cross-border transactions with the UAE, in 2019.
Trying to increase the rate of electronic payments to 70% of the country’s total by 2030, Saudi Arabia wants to ensure the continuity of cash transactions and the availability of paper and metal cash as a means of payment.
The representative said that the target could be reached five years ago, in 2025.
The UAE is now working on another cross-border CBDC project with China, Thailand and Hong Kong.