On the 7th edition of the New Age Banking Summit, executive president Mr Tahir Salim Al Amri announced the plan of the Central Bank of Oman to work on its own Central Bank Digital Currency (CBDC).
The information was accumulated from a tweet made by the Oman News Agency stating the Central bank of Oman plans to issue its own digital currency, like many other central banks and is committing to a unique addition to the financial sector.
The president also added that the bank authorities are working towards an open banking API service. This will help overcome challenges that the digitization sector faces and work on the importance of cybersecurity.
CBO Is Adopting a New CBDC
In April 2022, the Capital Market Authority in Oman stated that it would initialize real estate tokenization, in its licensed crypto exchange and virtual asset laws. The country will finalize its virtual asset laws by this year.
During the New age banking summit 2022, the Central bank of Oman discussed its new developments in financial technology, changes in financial sectors, and achieving better financial inclusion. The executive president of CBO focuses on their commitment to support new technology and modernization in the finance sector to ensure financial stability.
The CBO representative and president, H E Amri, stressed the importance of cyber security, and its plans on investing in technology to overcome challenges.
CBDC: A New Approach by Central Banks Around The World
With the growing popularity of digital currencies and assets, in many countries, the central banks are planning to develop their own digital currencies. The Sand Dollar, a local CBDC, has been under circulation for more than a year in the Bahamas. The technology, its policy, and implications are recently developed by Sweden’s Riksbank as they plan to initiate CBDC.
The e-CNY, a digital renminbi in China, is growing every day with billions of yuan transactions and more than a hundred million individual users. The Reserve Bank of India announced plans to take a graded approach in launching the country’s CBDC. The Central Bank of Oman is developing its own digital currency and has no updates to introduce the same in the market any time soon.
CBDC: An Important Addition to Financial Sector
According to a recognized global research firm, the major benefit of CBDC is to make digital transactions that are supported by authority and also support the digitalization of society.
The managing director of the International monetary fund, Kristaline Georgieva, stated that since the economy of every country is different, universal law does not apply to CBDCs. For some countries, CBDC is a crucial addition to financial sectors, especially the ones where location is a barrier to physical banking.
In cases of payment instrument failures, CBDC can be a great backup option. The central bank of the Eastern Caribbean extends its digital currency to the areas where people were stuck due to volcanic eruptions. Therefore, it is a great approach for countries to provide an authorized approach to the new era of digital assets.