The Saudi Arabian Monetary Authority (SAMA), which is the central bank for the Kingdom of Saudi Arabia (KSA), has signed an arrangement with Ripple to help the banks in the KSA to improve their payments infrastructure by using xCurrent.
This groundbreaking pilot program is the first of its kind to be launched by a central bank. Participating banks from the KSA are going to use xCurrent to instantly settle payments which are sent into, as well as out of the country, with some greater transparency and lower costs.
The use of xCurrent by SAMA has the potential to radically shift how banks in the KSA send money globally.
Now, the KSA has access to every financial institution (banks, as well as payment providers) on RippleNet, which will not just help modernize their payments systems, but also to further their reach into major corridors.
Also, the KSA banks’ customers will experience faster, as well as cheaper and more transparent cross-border transactions.
SAMA is also going to provide interested Saudi banks with program management and training as well.
SAMA’s use of xCurrent helps fuel global momentum for blockchain.
The recent adoption of SAMA of xCurrent makes it the second central bank that uses blockchain technology to revolutionize payments, following the european central bank, the Bank of England’s successful proof of concept with Ripple in 2017.
SAMA has also joined over 100 financial institutions that already rely on Ripple power end-to-end tracking, as well as an instant settlement for their payments around the world.
The addition of SAMA is just a part of a larger global trend that is favoring blockchain solutions for payments.
The global head of infrastructure innovation working at Ripple, named Dilip Rao, believes that the agreement with SAMA is just a part of the wave of recognition by financial institutions of the impact of blockchain solutions can have payments.
“Central banks all around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers, to trade and commerce for both corporates and customers.”
“SAMA also leads the charge as the first central bank for providing resources to domestic banks which want to enable instant payments using Ripple’s innovative blockchain solution.”