The Saudi Arabian Monetary Authority (SAMA), the kingdom’s central bank, is piloting Ripple’s xCurrent solution to help the kingdom’s banks settle cross-border payments instantly.
With the pilot, SAMA aims to facilitate real-time settlement of payments sent into and out of the country with more transparency and reduced costs. It will also offer training to support the interested banks.
SAMA has become the second central bank to use blockchain technology for payments. Last year, the Bank of England too conducted a successful proof of concept with Ripple.
At the same time, the partnership with Ripple will allow the kingdom to gain access to all financial institutions present on the RippleNet.
Ripple global head of infrastructure innovation Dilip Rao said: “Central banks 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 consumers.
“SAMA is leading the charge as the first central bank to provide resources to domestic banks that want to enable instant payments using Ripple’s innovative blockchain solution.”