Saudi Central Bank to work with Ripple for Processing the Cross-Border Payments

Fintech giant Ripple has cracked a new deal with the Saudi Arabia’s central bank in order pilot instant cross-border payments on a blockchain between domestic banks in the country.

According to the announcement, the Saudi Arabian Monetary Authority (SAMA), the central bank for the Kingdom of Saudi Arabia (KSA), has signed an agreement with Ripple for introducing a sweeping blockchain pilot which will see participating regional banks use Ripple’s enterprise blockchain for ‘instant’ international payments.

The pilot will allow the banks to transact using Ripple’s xCurrent, an enterprise blockchain software which processes the end-to-end tracking of payments and instant settlements around the world. The first-of-its-kind pilot involving a central bank will also see the KSA plugged in with access to over 100 financial institutions such as banks, payment providers and more through RippleNet, Ripple’s enterprise blockchain network.

The announcement also described that the KSA’s central bank is also offering Saudi banks with ‘program management and training,’ indicating the bullish effort by the central bank to adopt blockchain technology.

Ripple’s global head of infrastructure innovation Dilip Rao told:

“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.”

The Saudi central bank’s attempts is also an advantage for retail customers of local Saudi banks will be able to have transparent, less expensive and faster transactions while comparing with the traditional payment methods.

Rao included:

“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.”

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