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The Central Bank of Iran will reportedly launch a central bank digital currency (CBDC) pilot after the Nowruz (Iranian New Year) holidays in March. Informatics Services Corporation has developed the digital rial platform over the past two years and the central bank has prepared the infrastructure.

The Bank of Israel is accelerating its study, research and preparation for the possible issuance of a digital shekel aimed at creating a more efficient payments system. Governor Amir Yaron said that, similar to other central banks, the Bank of Israel had not yet decided whether it will issue central bank digital currency (CBDC) and was still examining the issue. "Central banks have a unique role to play in preventing fragmentation and ensuring that the payment system becomes even more uniform and efficient. One way to do this is through CBDC."

The Central Bank of Bahrain plans to offer a digital Dinar through a digital payments platform which will be available 24/7. The announcement came as part of the central bank's 2022-26 Financial Sector Development Strategy.

The Central Bank of Iran (CBI) reportedly informed banks and other credit institutions about regulations related to the minting and distribution of the crypto riyal central bank digital currency (CBDC). The distributed ledger technology based system will be maintained by authorized financial institutions and capable of implementing smart contracts.

Yesterday I reported that the Central Bank of Iran (CBI) was reported to be launching a central bank digital currency (#CBDC) pilot today (September 22, 2022). The news isn't coming directly from the CBI, but from the Iran Chamber of Commerce. Now Al Jazeera is reporting that the digital rial will run on a platform called Borna, which was developed using Hyperledger Fabric, an open-source permissioned distributed ledger technology (DLT) blockchain platform

The Saudi Central Bank (SAMA) is working on a phase of a project that focuses on domestic wholesale central bank digital currency (CBDC) use cases in collaboration with local banks and fintechs. SAMA stressed that although no decision has been made regarding the introduction of CBDC in the Kingdom, it continues to focus on exploring the benefits and potential risks of implementing CBDC.

The Middle East has seen a rapid rise in fintech in recent years, transforming the region's financial services landscape. Fintech makes the playing field increasingly dynamic and diverse, with various players, including financial institutions (FIs), offering innovative solutions across areas such as payments, lending, and wealth management. Governments in the region are actively supporting the development of fintech through regulations, investments, and initiatives to promote cashless payments. The region has also seen a boom in fintech investment, with several large deals and funds established to support startups. There is also a growing trend of collaboration between traditional banks and fintechs, as well as partnerships between regional fintechs and global players, to bring new solutions to the market.

Saudi Central Bank (SAMA) issued a report on the results of an extensive study conducted to measure used payment methods in the Kingdom during 2021, which aimed to assess consumer payment habits (cash and non-cash), across all market sectors; individuals, business, and the government sector. The study indicated that - for the first time in the Kingdom - cash is no longer the most used method of payment by individuals, as electronic payments of individuals have grown significantly to reach 57% in 2021 of the total number of transactions executed, compared to just 36% in 2019.

More details are being reported on the CBDC pilot reportedly launched by Iran's central bank. It's reportedly a partnership with two local banks (Bank Melli and Mellat Bank) that have have given 1 billion tomans ($311,000) to a limited number of people, and two shops have been designated for the use of the currency.

Fintech Saudi published its 2021/22 Annual Report, which showed that the number of active Fintechs in Saudi Arabia has increased by 79% from 2021 to 147, marking a 14.7x increase in 4 years. The report anticipates further growth over the coming year, with the launch of three new digital banks, and the recent publication of the Kingdom's open banking framework, setting out legislation, regulatory guidelines and technical standards. Fintech Saudi was launched by the Saudi Central Bank in partnership with the Capital Market Authority in April 2018 to act as a catalyst for the development of the Fintech industry in Saudi Arabia.

The Central Bank of Iran (CBI) is reportedly preparing a pilot launch of its Crypto-Rial central bank digital currency (CBDC) in August 2022. In the first phase, the pilot process will be launched in one region before it is extended to other areas of the country.

According to a KuCoin survey in May, around 3 million Saudi Arabians, about 14% of the adult population aged 18 to 60, had become crypto investors. Another 17% of respondents said they are likely to invest in crypto over the next six months.

"The Saudi Central Bank, better known as SAMA, has appointed Mohsen AlZahrani, former Managing Director of Financial Services at Accenture KSA as Virtual Assets and CBDC (Central Bank Digital Currency) program Lead. AlZahrani recently announced this on his LinkedIn profile."

SAMA Updates Its Regulatory Sandbox Framework to Drive Innovation The Saudi Central Bank (SAMA) updated its Regulatory Sandbox framework as part of its efforts to achieve the national strategic goals in the Saudi Vision 2030 Financial Sector Development Programme. The updated framework will also support the objectives of the fintech strategy and contribute to the economic empowerment of the Saudi society and its citizens by promoting further Fintech innovations.

"Saudi Arabia's central bank (SAMA) has hired Mohsen AlZahrani to lead its crypto and CBDC program. AlZahrani, a former Accenture managing director, became the lead of virtual assets and CBDC in July, according to his LinkedIn profile. He reports to Ziad Al Yousef, the central bank's deputy governor for development and technology."

The Central Bank of Iran (CBI) will reportedly start a central bank digital currency (CBDC) pilot on September 22, 2022. The bank published a draft document outlining the "goals, dimensions, threats and opportunities for the development" of a digital rial in August 2022. The CBI's current head, Ali Salehabadi, said earlier this month that the bank had the necessary infrastructure and rules in place for a launch.

The Central Bank of Iran published a draft document outlining the "goals, dimensions, threats and opportunities for the development" of a digital rial in August 2022.

The United Arab Emirates Securities and Commodities Authority (SCA) is reportedly getting ready to start issuing federal licenses to cryptocurrency service providers in the first quarter. The SCA will regulate the crypto industry with input from the central bank, but local financial centers can establish their own daily procedures around licensing.

An Arab Monetary Fund survey found that 76% of 17 Arab central banks are studying the possibilities of issuing central bank digital currency (CBDC), and three of them are participating in experiments to issue them. Two are expected to issue a CBDC in the next three years, while 60% of them expect to be able to issue within six years. 69% of Arab central banks are in the process of determining the type of CBDC issue, while 25% of them are involved in projects/studies to issue more than one type of CBDCs. Financial inclusion comes at the top of the motives to issue retail CBDCs, while for wholesale CBDCs it is combating money laundering and terrorist financing.

The Bank of Israel published a paper on the potential impact of issuing a central bank digital currency (CBDC) on the stability of the banking system and its ability to continue fulfilling its financial intermediation function. It concludes that, under common assumptions regarding the substitution volume between the public's deposits and the digital shekel, the negative impact to profitability is not expected to lead to a significant erosion in the banking system's profitability, its stability, or its ability to provide credit and fulfill its classic functions in a modern economy.