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

News
Mon, 06/08/2020 - 13:02
article image
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
Read U.TODAY on
Google News
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'.

article image
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.)

Monero-Bitcoin Atomic Swaps Live in Testnet, MVP on Menu

News
Thu, 01/14/2021 - 17:39
article image
Vladislav Sopov
Atomic swaps are peer-to-peer interactions between two blockchains. With new release by COMIT enthusiasts, BTC/XMR swap is right around the corner
Monero-Bitcoin Atomic Swaps Live in Testnet, MVP on Menu
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Contents

COMIT Project tasked with building cross-chain interaction infrastructure, has shared an update of its Bitcoin/Monero experiments. While testnet XMR/BTC swaps are up and running, while minimal viable product (MVP) is coming soon.

Developers polish XMR/BTC swaps

According to the announcement shared by COMIT team in its official subreddit, during last weeks several atomic swaps occurred between Bitcoin (BTC) testnet3 and Monero (XMR) stagenet sandbox environments.

XMR/BTC swaps are live in testnet
Image via Twitter

Meanwhile, the setup of the instrument remains cumbersome, in particular - on Bitcoin (BTC) side: it takes full Bitcoin testnet node and depends on internal wallet used for testing. 

MVP, which is going to be shipped in the next phase of experiments, will initially act as a single-sided tool. Users will be allowed to buy XMR from a fixed market maker that broadcasts XMR/BTC price on a website.

First version of tool will be released in form of a command line interface (CLI).

What does that mean for Bitcoin and for Monero?

The team is sure that single-sided version of a new tool (one direction/one fixed maker) is a good one to start with, in terms of further development. 

Next releases will include decentralized market-making (maker discovery and orderbook) and evolve into peer-to-peer marketplace.

At the same time, another team is working on different solution for BTC/XMR atomic swaps. It is funded by a large-scale Community Crowdfunding System (CCS), Monero community-driven initiative.

Releasing atomic swaps with Monero (XMR) may result in increasing the privacy of Bitcoin (BTC) holders: they will be able to obfuscate transactions with no need to interact with centralized services.

article image
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.)