Many countries have been looking at ways in which they can get involved in the cryptocurrency sector. Many central banks across the world are actively looking at creating their own digital currency for example.
A new digital token that is being backed by the Saudi Arabian central bank is set to be launched during 2019. This will allow for numerous banks being able to make cross-border payments that are a lot more seamless than they currently are.
They have been testing the concept for some time now to see if it is a feasible goal. They aim to have all banks using this system in the future. There is also a plan between the Saudi Arabia authorities and those in the United Arab Emirates to collaborate on a joint token venture. They are in the middle of designing this token.
This comes at a time when the likes of India and China are said to also be creating their own digital tokens. In previous times, the likes of central banks were very against digital currencies.
They believed that they were not real currencies and could not serve much of a purpose. However, as the space becomes more advanced and people begin to learn more about it, these authorities realized that they could derive real benefits from its adoption.
Payments can be made a lot faster and cheaper through digital currencies that are using blockchain technology. Current systems are somewhat antiquated, taking many days for payments to process and costing significant costs. This all adds up over the course of months and years.
It will certainly be interesting to see how these new tokens perform if and when they are launched in 2019.