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

News
Mon, 06/08/2020 - 13:02
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
Cover image via stock.adobe.com
Contents

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'.

 

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.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

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.)