Saudi Arabia plans to introduce nationally regulated stablecoins. Global crypto exchanges welcome the move. They see it as an important step for digital finance.
The Saudi government is preparing to introduce stablecoins under national regulations. This plan has received praise from the world’s leading crypto exchanges, who see their plan as an important step for digital finance. According to AlarabiyaMajed al-Hogail, Minister of Municipal, Rural Affairs and Housing, confirmed that Riyadh is in contact with the Capital Market Authority (CMA) and the Saudi Central Bank (SAMA) to commercialize these regulated stablecoins in the near future.
Understanding Stablecoins and their regional impact
The initiative is part of the country’s Vision 2030 program, which aims to diversify the economy and update the financial system through innovation and financial technology partnerships. With over 79% of retail transactions in Saudi Arabia already cashless, stablecoins could turn the country into a regional financial hub.
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Stablecoins are a type of digital currency designed to have a stable value (usually by being pegged to a reserve asset like the US dollar or gold). Unlike cryptocurrencies like Bitcoin or Ethereum, which are more volatile, stablecoins have the potential to improve both the speed and efficiency of a digital asset and the stability of conventional currency.
Additionally, they are gradually being used to speed up payments, remittances and cross-border transactions. Governments around the world are exploring regulated stablecoin frameworks to improve financial inclusion and digital commerce.
UAE adoption paves way for Saudi crypto stablecoin change
In the Gulf region, the United Arab Emirates has already allowed stablecoin payments in certain sectors, setting a precedent for wider adoption in the region. Saudi Arabia’s high rate of cashless transactions gives it a good platform to capitalize on stablecoin opportunities, reaffirming its position as a logistics and financial hub.
Vivien Lin, chief product officer at global cryptocurrency exchange BingX, said Saudi Arabia’s interest in regulated stablecoins was “a turning point for the region’s digital asset landscape.”
She kept in mind the Kingdom’s long-term investment in cashless payment systems and said the minister’s comments indicate a transition from research to implementation within a controlled policy framework. Lin called this approach “progressive and risk-aware” and allows stablecoins to be “instant settlement and greater liquidity efficiency” operating within existing regulations.
On the other hand, Michelle Daura, Head of Regulated Regions at Bybit, also welcomed the announcement and considered it a good sign to move things forward. “Stablecoins can help leverage the financial ecosystem when embedded in strong forms of regulation and consistent with national values,” she said. Daura believes that this path represents Saudi Arabia’s commitment to modernization, consumer protection and financial stability, and will constitute one of the most important global markets for the development of digital assets.
Global Support and Potential Benefits
Global crypto exchanges such as Bybit and BingX all strongly support Saudi Arabia’s plans. This initiative is in line with the economic diversification objective of Vision 2030 and supported by the Saudi government, CMA and SAMA. Although Binance has not explicitly mentioned this initiative in recent reports, this company’s significant presence in Saudi Arabia and the growing use of stablecoins on its platform has signaled broad industry support.
Currently, crypto in Saudi Arabia is not legal tender and banks require authorization to provide crypto services. The government’s transition to regulated stablecoins is considered gradual and allows stablecoins to operate within existing regulatory frameworks. Analysts believe this could make Saudi Arabia a regional leader in digital payments and decentralized finance.
In conclusion, Saudi Arabia’s plan to launch regulated stablecoins represents a pivotal moment for the country’s financial future. This initiative, highly favored and approved by the world’s largest crypto exchanges, promises great economic and financial efficiencies, in perfect alignment with the ambitious modernization objectives of the country’s Vision 2030.
