The Saudi Arabian Monetary Agency (SAMA) has prveal a pilot project in which the institution will issue a digital currency that will be traded only between banks to avoid any economic impact.
This came during a press conference held by Ahmed Al-Khulaifi, Governor of SAMA, on Wednesday at the headquarters of the Foundation in Riyadh on the occasion of the issuance of the Foundation's 53rd annual report on the economic and financial developments in the Kingdom during 2016.
"At the same time, the institution will evaluate the positive aspects of the experiment and consider whether it will continue or be stopped," Khalifi said.
He explained that the paper will be dispensed with and will depend on the metal riyal during the next phase. The Foundation provided all the equipment for the issuance and circulation of the riyal metal at the headquarters of the Foundation and its branches and the entire banking sector.
Al-Khulaifi was also surprised by the decline in the Saudi Riyal exchange rate in the futures contracts. He said he saw no reason for this, describing the liquidity in the banking system as good, deplored by the volume of non-performing loans in the Kingdom.
Al-Khalifi described SAMA's reserve assets as still good, at 1.8 trillion riyals in August, covering more than 30 months of Saudi imports of goods and services, accounting for more than 70 percent of GDP.
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