KSA use of digital currencies is proactive step – Analysis

KSA use of digital currencies is proactive step – Analysis
KSA use of digital currencies is proactive step – Analysis

By: Mahmoud Gamal

Riyadh – Mubasher: The Saudi Arabian Monetary Authority’s (SAMA) plan which was announced on Wednesday to replace the paper Saudi Riyal with a digital one is important step that will open new investment opportunities in the Kingdom, analysts told Mubasher.

The SAMA’s governor Ahmed Alkholifey said on Wednesday that there will no paper Saudi Riyal in the coming period.

The currency which will replace the paper Saudi Riyal will be under the supervision of SAMA.

Transferring to digital currencies is a step to keep in touch with technological developments that reduced the relying on paper and metal currencies for the advantages of digital currencies, the executive director in ICM Capital Shoaib Abedi said.

The reduction of issuance costs, ease of transport, the lower costs for protecting it, and etc are the most advantages of using the digital currency, Abedi added.

Transferring to use digital currencies will able the country to follow the economic performance and reduce the underground economy, Abedi noted.

Saudi Arabia and the UAE announced their plans to launch new digital currencies, Raed Alkhedr, analyst in Equiti Group said.

Banks must have the ability to transfer to digital transitions quickly, Alkhedr added.

The decision of using digital currencies between Saudi banks is still under discussions, analyst in currencies and commodities markets Ahmed Hassan Karam told Mubasher.

The digital currency’s value will be the same value of the domestic one, dealing with it will be between banks only, and it will not impact largely on the economy.

Translated by: Mohamed Hesham Azab.