Saudi Arabia’s central banking authority is reportedly planning to give operating licences to more digital banks in the Kingdom.

Speaking at a financial forum in Riyadh Saudi Central Bank (SAMA) Governor Fahd Al-Mubarak revealed the plan.

Notably, in June this year, the Saudi Cabinet issued licences to the first digital banks – STC Bank and Saudi Digital Bank.

The Cabinet approved plans to convert STC Pay into STC Bank with a capital of SAR2.5bn ($666.7m) and establish Saudi Digital Bank as a local lender with a capital of SAR1.5bn ($400m).

Addressing the forum Al-Mubarak stated that Saudi Arabia has a cross-border digital currency scheme with the United Arab Emirates and a unified currency for the clearing system for the lenders in the region.

“There is a currency exchange policy in the Gulf region that is very similar to digital transactions and depends a lot on the dollar. Therefore, we have the ability, which exceeds the capability of any others in the region, to move to digital currency at the regional level,” he was quoted by Saudi Gazette as saying.

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Al-Mubarak noted that the Kingdom has gained experience in handling digital currencies through partnerships.

He added that Saudi Arabia has several firms operating in various sectors such as financial payments and insurance.

The country has an open banking programme as well, he added.

As per the report, earlier, Al-Mubarak has revealed that Saudi Arabia is planning to set up a low cost digital central bank to simulate digital operations with a focus on technology, cybersecurity, combating money laundering and terror funding.