The report mentions the utilization of Blockchain, IOT, and AI in the development of Digital currencies
Bahrain based Derasat published a report this month, that highlights the impact of the COVID-19 crisis on the projects of Central Bank Digital Currencies (CBDCs) and the future of financial services. It explained the reason for why attention of some central banks and financial institutions to CBDCs and FinTech solutions amid the crisis, and the future prospects in this regard. The report also pointed out significant issues that require consideration from GCC countries, based on future expectations.
The report which is published in Arabic touched upon the many Central Bank Digital Currency projects underway especially the Chinese government project that is being implemented in reaction to economic crisis after Covid as well as USA’s stance towards China. In addition the report mentions the many other projects occuring in Europe.
The report states that the future of banking and financial services sector is changing, given currenct economic crisis after Covid. Blockchain and digitization will play a strong role in the implementation of new solutions for regtech, suptech, CBDCs, and others.
As for the GCC ( Gulf Cooperation Council) the report states, currently investments in fintech in the region are in their intiial stages, but our growing quickly especially in the UAE as per IMF reports. The GCC and UAE have also witnessed increased regulatory efforts to encourage investments in this area, as well as develop digitization solutions for the financial and banking sector. While some countries in GCC are utilizing blockchain and digital currencies to pay incentive programs and stimulas packages. This includes the recent activity carried out by SAMA ( Saudi Arabian Monetary Authority) in KSA.
The report concludes that countries, governments will be giving more attention to Central Bank Digital Currencies, and more governments will discuss how to implement these digital currencies, establish standards. The report states that this will entail developing the electronic payments sector and regulations as well, and the role of central banks in the era of fintech and digitizaiton.