Saudi Arabia hires crypto chief, signals warming to digital assets

The potential for growth in Saudi Arabia’s fascination with cryptocurrencies is real. Former Accenture executive hired by Saudi Central Bank to lead crypto and CBDC initiatives. In the past, the Kingdom of Saudi Arabia treated cryptocurrency with more caution.

After bringing in a former CEO from Accenture to promote bitcoin adoption, Saudi Arabia is starting to see the promise of the digital currency. According to Bloomberg, the Saudi Central Bank has recruited Mohsen AlZahrani, a former CEO of Accenture, to lead the bank’s cryptocurrency and cannabidiol (CBD) initiatives.

According to his LinkedIn profile, AlZahrani has worked at the bank since July. While at the central bank from March 2015 to October 2018, AlZahrani oversaw the innovation center’s cryptocurrency and CBDC projects.

Multiple sources have told Bloomberg that Riyadh has recently shown interest in digital assets and has begun talking to the industry’s biggest companies to gauge the UAE’s policy towards cryptocurrency. Aber is a Central Bank Digital Currency (CBDC) program that is part of the countries’ coordinated effort to develop digital assets.

Aber, a “common digital currency and distributed ledger” experiment announced in 2019, is a digital currency trial jointly issued by two national central banks. The project was developed by the Central Bank of the United Arab Emirates (CBUAE), Saudi Central Bank (SAMA) and six commercial banks.

Why did Saudi officials express concerns?

In a move that signals the Gulf state’s future crypto ambitions, Saudi Arabia’s banking regulator has appointed Mohsen AlZahrani to oversee the kingdom’s virtual assets and the central bank’s digital currency initiative. The source claims that Al Zahrani and Al Yousef work on a team in Riyadh, the Saudi capital, which has been in contact with leading cryptocurrency firms about upcoming regulations.

Saudi officials have expressed concern about the speculative nature of virtual assets, taking a more cautious approach so far. However, sources familiar with the situation say Riyadh is feeling pressure to develop more formal restrictions on the asset class due to the UAE’s emergence as a global hub for cryptocurrencies.

The role of cryptocurrency in Saudi Arabia

The anonymous sources said AlZahrani, a former managing director at consultancy firm Accenture, now reports to Ziad Al Yousef, the central bank’s deputy head of development and technology. They said they were part of a group in Riyadh that held talks with major cryptocurrency firms about the proposed legislation.

Officials from SAMA did not respond to requests for comment. Saudi Arabia has been pushing businesses to increase their presence in Riyadh as part of Crown Prince Mohammed bin Salman’s plans to turn the city into a hub for the entire world. It has taken Dubai, the commercial hub of the Gulf, head on.

Saudi Arabia and the UAE are exploring a unified digital currency

Given its large economy and relatively affluent population, the Kingdom is a significant market for businesses operating in the Middle East. Binance Holdings Ltd., one of the biggest companies in the industry, has expanded its Saudi teams in anticipation of the country’s potential as a largely untapped market should current restrictions be lifted.

https://www.bloomberg.com/news/videos/2022-09-05/saudi-arabia-s-central-bank-hires-crypto-chief

Despite Riyadh’s 2018 ban on bank-based cryptocurrency transactions, there are still ways to trade. Experts say local banks have recently tightened restrictions on how they can talk to their customers.

In addition, the governments of Saudi Arabia and the United Arab Emirates have been discussing the possibility of a common digital currency for some time.

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