As part of its CBDC implementation efforts, the bank is now looking to test the economic impact of implementing a digital currency, as well as quick applications of CBDC-based payment solutions, and the readiness of the market. In order to keep in line with the objectives set by Saudi Vision 2030, the bank is looking closely at various policy, legal, and regulatory aspects before starting a new CBDC testing phase.
Before implementing a central bank digital currency, the Saudi Central Bank also plans to hold consultations with international bodies, local government entities, and the public. According to thefintechtimes.com, the main goal of a CBDC would be to foster innovation in the country’s financial services sector. Saudi Central Bank officials cited by the same source emphasised the key role that local banks and payment companies will play in the project’s development.
It is worth noting that the bank has not made any final decisions to implement a CBDC in Saudi Arabia, but it is exploring every possible angle as well as the benefits and potential challenges that such an undertaking would bring.
According to saudiembassy.net, the primary objectives of the Saudi Vision 2030 initiative focus on several goals and reform strategies for the Kingdom’s long-term economic success, including reductions in subsidies, the creation of a sovereign wealth fund, opening Saudi Aramco to private investment through a partial IPO, and reforms to several industries including tourism and defence.
The vision is built around three primary themes, namely a vibrant society, a thriving economy, and an ambitious nation. When it comes to improving the country’s economy, the project aims to support economy diversification by creating dynamic job opportunities for citizens.
These objectives would be achieved by diversifying the nation's economy through the ongoing privatisation of state-owned assets, including establishing a sovereign wealth fund that would be financed through the partial IPO of Saudi Aramco. Supporting underdeveloped industries such as manufacturing, renewable energy, and tourism is also on the agenda.
The plan also involves Saudi Arabia having at least five universities among the top 200 universities in the world. Moreover, small and medium-sized enterprises (SMEs) would receive more financial assistance, and their success would increase their contribution to GDP from 20% to 35% by 2030.
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