Kuwait creates infrastructure for its future national cryptocurrency

According to local media, the Central Bank of Kuwait announced plans to create a national cryptocurrency and payment system.

The head of the bank, Dr. Mohammad Y. Al-Hashel, said that in 2019 and 2020, the Kuwaiti National Payment System (KNPS), which is being created in cooperation with banks and payment services, will be deployed in the country.

The new system will include a government e-banking service, digital currency and an automated clearing house. According to Al-Hashel, all these initiatives are designed to strengthen stability and improve the efficiency of the financial system, as well as to create the infrastructure necessary to serve the growing economy of the country. For example, a government electronic banking system will replace the turnover of traditional paper banknotes. The new system will be used in the work of all government departments.

Recently, central banks and regulators in many countries have been paying close attention to the concept of state digital money. Kuwait is moving in the same direction. Now the country is creating infrastructure for the national cryptocurrency. The final decision on the start of its emission has not yet been made, but the chances are great.

Al-Hashel explained:

“If in the future the Central Bank of Kuwait still decides to start issuing a digital currency, a digital Kuwaiti dinar, we will have all the necessary tools, including an e-wallet.”

In addition, the bank manager recalled that the bank had recently created a regulatory "sandbox" for startups and experiments.

In conclusion, Al-Hashel noted that “certain phenomena take time” and “the shortest path is not the best”, implying that the realization of all these innovations is a matter of the future.

Recall that in 1990, Kuwait was occupied by the regime of the ruler of Iraq, Saddam Hussein. In the course of the “Gulf War” that started because of this, Kuwait suffered enormous losses; the majority of the indigenous population fled to Saudi Arabia and other neighbouring countries. Despite the enormous damage, the country regained its former prosperity in a few years. Now this state is in the top ten countries with the highest GDP per capita. Kuwait accounts for 9% of all world oil reserves.