The bank has signed a deal with the crypto­curren­cy to settle paymen­ts using blockc­hain softwa­reSaudi Arabia’s central bank has signed a deal with US-based Ripple to help banks in the kingdom settle payments using blockchain software, as Gulf regulators begin to explore new forms of financial technology. The pilot program is the first of its kind to be launched by a central bank, allowing banks in Saudi Arabia to use Ripple’s software to instantly settle payments sent into and out of the country, the company said late on Wednesday. Blockchain revolution comes to world of humanitarian aidThis will allow Saudi banks to make faster, cheaper and more transparent cross-border transactions, Ripple said, adding that the central bank would provide training to Saudi banks interested in the program. Most regulators in the Gulf initially expressed scepticism about fintech and last year the Saudi central bank warned citizens against trading bitcoin because it was outside the bank’s regulatory reach. Over $150b wiped off this week as cryptocurrencies tumbleThe Saudi central bank is working with the United Arab Emirates central bank to issue a digital currency that would be accepted in cross-border transactions between the two countries, UAE central bank governor Mubarak Rashed al-Mansouri told Reuters in December.

Source: The Express Tribune February 18, 2018 09:11 UTC