The Saudi Arabian Monetary Authority (SAMA), the country’s central bank, today revealed that it has recently used blockchain technology to deposit part of the liquidity that SAMA had previously announced, to be injected into the banking sector. This move is part of SAMA’s actions aimed at enhancing the sector’s capabilities to continue its role in providing credit facilities.
SAMA further said that the blockchain deployment is part of its continued efforts to explore and experiment with emerging technologies. Specific details of the initiative remain unknown.
SAMA did not provide the amount of liquidity injection via blockchain, but last week the central bank decided to inject a total of 50 billion Saudi riyals (~$13.35 billion) to enable banks to support the private sector, according to market sources.
Developing fintech in the Kingdom
SAMA said in its statement that it is is one of the pioneer central banks to experiment blockchain technology for money transfers. It noted that this move was one of the key innovative initiatives launched by SAMA in its program to enable and develop fintech in the Kingdom. Others were the Fintech Saudi Initiative in cooperation with the Capital Market Authority, the introduction of SAMA Regulatory Sandbox, and an array of digital banking services and payments.
SAMA was established in 1952 and is based in Riyadh. It was previously known as Saudi Arabian Monetary Agency.