It seems that cryptocurrency enthusiasm is not fading after all, as middle east countries began embracing the digital currency.
The Kingdom of Saudi Arabia (KSA) is apparently pre-occupied with launching of its own cryptocurrency. The oil-rich country commenced the scheme following the signing of a bilateral agreement with the United Arab Emirates (UAE). The specifics of the project are still vague at the moment.
However, KSA officials indicated that the project will be launched sometime next year. The Kingdom’s investment regulator, the Saudi Arabia Monetary Authority (SAMA), convey that its officials are making haste in that aspect.
Head of SAMA, Mohsen Al Zahrani emphasizes that they are progressing with the project by working with the UAE. Governor of the Central Bank of the UAE, Mubarak Al-Mansouri informed that the digital currency is in its design development.
Al-Mansouri remarked that they await details the Kingdom will provide in terms of the project’s structure. He also suggested that their capability to meet the deadline is based on the Kingdom’s feedback to their request. With all the help they can get, the release date by the middle of 2019 is consecrated.
The adoption of cryptocurrency in the Middle East has dealt with countless objections from the previous years. KSA is a compelling state in the region and takes a courageous move to release its own cryptocurrency. The Kingdom vows to unfold its country for business organizations to migrate while the price of crude oil keeps on declining.
Ripple has earlier burgeoned its business activities to the country. It is an indication that Saudi Arabia-based banks, as well as financial service providers, can now make the most of Ripple tech-based products to improve their operations. As a result, the Kingdom’s National Commerce Bank has affiliated with RippleNet as a member. The Saudi Arabia Monetary Authority has likewise employed Ripple technology.
The upcoming cryptocurrency will function mostly for banks instead of for retail users. Using a digital currency just like this one makes banking and financial transactions much faster and easier than the traditional systems. It would also lessen the operational expenditures of financial institutions.
Still, there are a few questions that stayed moot regarding the forthcoming cryptocurrency. No information was provided if it will be tied to Saudi Dinar or another currency. It could become a digital Saudi Dinar instead of a special cryptocurrency.
KSA must continue with the analysis and study to deliver all the vital information about the would-be launched cryptocurrency. Once this phase is accomplished, the virtual currency will be all set to launch, according to Al-Mansouri.
This project scheme of KSA will surely any cryptocurrency enthusiasts given the present volatility issues. But this elaboration demonstrates the achievement of Bitcoin was not ignored. In all possibility, KSA is releasing its national digital currency to take advantage of the rewards the new cryptocurrency will provide. SAMA is currently speeding up a feasibility study on the scheme in a bid to distinguish the definite purposes the digital currency will provide.
Meanwhile, there are other countries poised to launch their own cryptocurrency. These include Canada, Norway, Sweden, and Ukraine. Head of the International Monetary Fund, Christine Lagarde encouraged banks to begin delving into digital assets and explore with them.