Fintech giant Ripple has signed a new partnership with Saudi Arabia's factual central bank to pilot instant cross-border blockchain payments among domestic banks in the region.
The Saudi Monetary Authority (SAMA), the central bank of the Kingdom of Saudi Arabia (KSA), has reached an agreement with Ripple to launch a blockchain pilot project that will see the regional banks use the Ripple corporate blockchain for 'instant' international payments, an announcement revealed today.
The pilot project will allow banks to trade using Ripple's xCurrent, an enterprise blockchain software that tracks end-to-end payments and instant payments around the world. The first pilot project involving a central bank will also see the KSA plug in with access to more than 100 financial institutions - banks, payment providers and more - on RippleNet, Ripple's blockbusiness network.
More importantly, Saudi Arabia's central bank will also provide Saudi banks with "program management and training," Ripple said, pointing to the central bank's bullish effort to adopt blockchain technology.
Dilip Rao, global head of infrastructure innovation at Ripple, said:
"SAMA is the first central bank to provide resources to domestic banks that want to enable instant payments using Ripple's innovative blockchain solution."
The Saudi central bank's efforts also point to benefits for retail clients of local Saudi banks which, Ripple adds, will benefit from transparent, cheaper and faster transactions compared to traditional payment methods.
"Central banks around the world are looking at blockchain technology in recognition of how it can transform cross-border payments, which reduces trade and commercial barriers for businesses and consumers," Rao added.
The announcement comes a few days after the acquisition of Ripple by UAE Exchange, one of the largest money and currency transfer operators in the Middle East, also a member of RippleNet, and LianLian based in Hong Kong to allow payments cross-border to the Chinese market.