According to a research, central banks in the Middle East and Central Asia are thinking more and more about using digital currencies as a way to improve financial inclusion.
The International Monetary Fund stated in a blog that in order to increase the effectiveness of cross-border payments, the economies in these countries are also shifting toward digital currencies.
Unlike cryptocurrency, CBDCs are a type of digital money that is issued by a central bank.
According to the report, 19 Middle Eastern and Central Asian nations are presently conducting research to create digital currencies that will be issued nationwide.
“The UAE, Georgia, Saudi Arabia, Bahrain, and Saudi Arabia have gone to the ‘proof-of-concept’ stage. Following two digital tenge pilot programs, Kazakhstan is the most advanced, according to the IMF.
According to the Bank for International Settlements, Saudi Arabia participated in a cross-border experiment of digital currency earlier in June, which was dominated by China.
As a result of the trial, the central banks of China, Hong Kong, Thailand, and the United Arab Emirates will work together on Project mBridge, with the Saudi Central Bank joining as a “full participant” in 2021.
Under the direction of BIS, Project mBridge is a multi-CBDC platform designed to facilitate real-time foreign exchange and cross-border payments.
The CBDC project’s infrastructure development was completed, as the Qatar Central Bank declared on June 2.
According to a press release from QCB, the action is in line with worldwide developments in digital money and will improve Qatar’s financial industry.
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