Published: Thu, February 15, 2018
Business | By Tara Barton

Saudi Arabian central bank inks deal with blockchain startup Ripple

Saudi Arabian central bank inks deal with blockchain startup Ripple

Most regulators in the Gulf initially expressed scepticism about fintech and past year the Saudi central bank warned citizens against trading bitcoin because it was outside the bank's regulatory reach. Last week, they partnered with LianLian International which is a China-based payment services provider.

After the announcements from SAMA and Ripple, the price of XRP inched just up to $1.15 from $1.08 on February 14th.

The deal, signed with the Saudi Arabian Monetary Authority (SAMA), will see Ripple develop software that will be used in the country's banks to help settle payments using the blockchain software.

Saudi Arabia's deal with the cryptocurrency company is the first such blockchain-utilizing pilot program launched by a central bank.

"Central banks around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers to trade and commerce for both corporates and consumers". To that end, the central bank will use Ripple's xCurrent platform in the pilot program, the blockchain solutions development company said in a statement. Thus, Ripple has, unsurprisingly, proven itself to be an attractive offer. The addition of SAMA is part of a larger global trend favoring blockchain solutions for payments. In turn, the cryptocurrency has long come under criticism for undermining what some consider to be the very foundations of cryptocurrency and blockchain technology.

RCMP recover two stolen vehicles in the Salmon Arm area
On Feb. 13 police received the call the truck had been stolen and that a black vehicle may be associated with the theft. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

At the news, Ripple's XRP token experienced a surge of interest from investors. It peaked at $3.31 in January, but is trading at around $1.15 this week. It is now trading at $1.12.

SAMA said it will provide the required training and project management to interested Saudi banks.

This might be no more than a coincidence, however, as the cryptocurrency market in general has rebounded over the last few days.

What do you think of Ripple's efforts to continually sign major deals with financial institutions?

Images courtesy of Shutterstock and Bitcoinist archives.

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