Upon completion of its work, the Council of Governors of Arab Central Banks and Monetary Financial Institutions held a high-level seminar in Saudi Arabia today, Monday, on the topic “Digital Currencies for Central Banks and the Future of the Monetary System”.
Today in Jeddah, on September 18-19, the meeting of the forty-sixth regular session of the Council of Governors of Central Banks and Monetary and Financial Institutions of Arab countries, which was hosted by Saudi Arabia represented by the Central Bank of Saudi Arabia, ended.
During the seminar, Saudi Central Bank Governor Fahd bin Abdullah Al Mubarak stated that “the global economy is undergoing a technological revolution as a result of the encouragement of the use of new technologies such as artificial intelligence and the Internet of things. , and records circulated in a number of sectors, including the financial sector, as part of the so-called industrial revolution. Fourthly, the result of which has been a large number of innovative business models based on technology as the basis for providing new services and products or developing the quality of traditional services and reducing their cost”, given that “financial technology is one of the most important results of the use of new technologies at this stage, which will contribute to the growth of the sector”. foundations of economic growth at the state level.
Fahd bin Abdullah Al Mubarak noted that “central banks play a key role in supporting an economy that depends on these instruments, avoiding many potential risks and supporting balanced innovation by exploring the aspects of issuing a digital model for sovereign currencies represented in central banking digital currencies (CBDCs). )), as well as conducting experiments and tests to understand the necessary technologies, policies and legislation”, noting that “the development and issuance of digital currencies for central banks should take into account the needs and privacy of each country, and that this stems from a clear vision that takes into account all relevant aspects, especially the expected impact on commercial banks and the “private as a whole” sector.
Al Mubarak added: “International efforts to explore and research central bank digital currency should not lose sight of the most important role of central banks in providing stability, financial and monetary security, and protecting clients, and this does not necessarily mean focusing on avoiding risks alone. but rather by exploring opportunities to increase the value of the opportunities it can provide. Central bank digital currencies and new technologies in enhancing the effectiveness of central bank tools to play their most important role and achieve their goals.
For his part, Abdul Rahman bin Abdullah Al Hamidi, CEO and Chairman of the Board of Directors of the Arab Monetary Fund, explained that “the accelerated pace of digitization of financial services, especially after the coronavirus pandemic, innovations in financial infrastructure and the use of distributed ledger technology along with the emergence of decentralized finance mechanisms . This has prompted central banks around the world to evaluate various aspects of central bank digital currencies and e-money in terms of exploring and selecting different use cases. cases for wholesale and retail payments in these currencies”. Communication from development to study of the various effects of these currencies on financial stability, monetary policy and the fight against money laundering and terrorist financing.
He also noted that “the Arab countries have not lost sight of this scene, which reflected the growing interest at the level of the Arab region in assessing the issuance of digital currencies from 76% of the Arab central banks that responded to the questionnaire, which are 17 Arab central banks.”