In its Jan. 23 bulletin, the Central Bank of Saudi Arabia announced that it is exploring a central bank digital currency (CBDC), but has yet to announce its official launch, Cointelegraph writes.

For now, the bank is working on a phase of the project that “focuses on internal options to use CBDC for wholesale use in cooperation with local banks and fintech companies,” and there has been no final decision on the launch and implementation of such a digital currency.

The Bank is, among other things, exploring aspects of a state-owned digital currency, including its economic impact, market readiness for it, and the use of CBDC-based payment solutions. It also intends to consider the policy, legal and regulatory aspects of its implementation.

The move is part of the Saudi Vision 2030 initiative, which aims to reduce the Kingdom’s dependence on oil, diversify the economy and develop public service sectors – healthcare, education, infrastructure, recreation and tourism.

Local banks and payment companies will actively participate in the CBDC project and implementation.

The central bank successfully conducted a CBDC experiment called “Project Aber” in 2019 in cooperation with the central bank of the United Arab Emirates, exploring whether blockchain technology can facilitate cross-border payments.

In late 2020, the banks published a report stating that CBDC is technically viable for cross-border payments.

According to the US think tank Atlantic Council, 11 countries have now fully implemented CBDC, while another 17 are conducting pilot projects.