With local banks and fintech firms, Saudi Central Bank (SAMA) shared that it is pushing forward a phased project to experiment with central bank digital currencies.

They will focus on using CBDCs as a domestic wholesale financial instrument, as noted by the central bank.

During this project stage, SAMA will investigate the social and economic impact on market viability and the potential application of CBDC-based solutions. This is the reason why the decision to launch CBDCs is still pending.

“SAMA stresses that although no decision has been made regarding the introduction of CBDC in the Kingdom, it continues to focus on exploring the benefits and potential risks of implementing CBDC,” the central bank stated.

To achieve the objectives of Saudi Vision 2030 and before moving to the next stage of the CBDC journey, SAMA seeks to review policy, legal and regulatory considerations. 

In addition, SAMA seeks to review policy, legal and regulatory considerations before moving to the next phases of the CBDC journey to contribute to achieving the objectives of Saudi Vision 2030.

The note mentions that “SAMA will continue to experiment on CBDC solution as an infrastructure enabler of innovation in financial services that has the potential to contribute to a more resilient payment ecosystem and accelerate digital transformation in the local financial sector.”