Saudi Arabia may be ready to launch a cryptocurrency in 2019. The information was released Tuesday by the Saudi news agency quoting Mohsen Al Zahrani, head of innovation at the Authority currency of Saudi Arabia (SAMA). SAMA he is the financial regulator of the country.
However, Saudi Arabia will not be the only country working on this virtual currency. The United Arab Emirates (UAE) are behind the development of this digital currency. According to the Governor of the Central Bank of the United Arab Emirates, the cryptocurrency had already been designed.
Saudi Arabia must continue with investigations and research to provide all necessary information about it. Once this phase is completed, the digital currency will be ready to be launched, said Mubarak Al-Mansouri during a conversation with Agraam.
It is important to remember that this virtual currency will work primarily for banks rather than retail users. With a digital currency like this, banking and financial transactions could be processed faster than normal systems. This would help financial institutions to reduce their operating costs.
"Digital currency will not replace [physical cash]", Commented on the Al-Mansouri affair," will be a new payment instrument used by banks and not by individuals ".
However, there are some questions that have remained unanswered regarding this digital currency. There is no information on whether it will be anchored at the Saudi Dinar or another currency. It could become a digital Saudi Dinar rather than a single cryptocurrency.
There are several countries that are planning to issue their virtual currencies. For example, Norway, Sweden, Canada and Ukraine are evaluating different possibilities for issuing their digital currencies. At the same time, Christine Lagarde, head of the International Monetary Fund, said that banks should start examining digital resources and experimenting with them.