Saudi Arabian Central Bank Deploys Blockchain Techhnology to Interact With Local Banks

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Mon, 06/08/2020 - 13:02
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Vladislav Sopov
A central bank digital currency, or CBDC, is the most widespread use-case for financial authorities in terms of blockchain, but not the only one
Saudi Arabian Central Bank Deploys Blockchain Techhnology to Interact With Local Banks
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Saudi Arabian Monetary Authority (SAMA) has moved part of its liquidity injections to a blockchain-based system. This may revolutionize the way a central bank interacts with local banks.

Support by blockchain

In accordance with the official announcement from SAMA, a significant portion of liquidity for local banks will be transferred through blockchain-based instruments. SAMA will inject this liquidity to support local banks and to enhance their capabilities in delivering credit services.

KSA launcked blockchain-based money transfer system
Image via Twitter

It is highlighted that this step is the next stage of the KSA financial authorities' experiments with cutting-edge technologies. Also, this novelty is crucial in terms of the global adoption of distributed ledger technologies in the financial sector.

SAMA is taking part in a multi-purpose program designed to increase the role of blockchain-based public and banking services in KSA. This program facilitates the technical, marketing and regulatory progress of the blockchain sector.

E.g. SAMA launched The Fintech Saudi Initiative in cooperation with the Capital Market Authority and implemented the SAMA Regulatory Sandbox for decentralized financial instruments.

Central banks around the globe are considering CBDCs

The decision of SAMA is a textbook example of progressive state interest in the implementation of blockchain technologies in the traditional banking segment.

For instance, The Bank of England collaborates with the European Central Bank and The Bank of Japan in researching the features of central bank digital currencies. 

Using CBDCs in cross-border transactions is in the spotlight on the working group's agenda.

Also, an Ethereum-based stablecoin is being tested by the Australian central bank as a payment tool. The Royal Bank of Australia describes the instrument as a 'private, permissioned Ethereum network'.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)