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Oman’s central bank to develop digital currency

31 May 2022 By OUR CORRESPONDENT

Muscat – Oman’s central bank is working to develop its own digital currency and open banking services, the executive president of the Central Bank of Oman (CBO) said on Tuesday.

Speaking at the inauguration of New Age Banking Summit 2022, H E Tahir al Amri stated that the work is underway on the CBO’s digital currency and Open Banking APIs. He also highlighted the CBO’s new initiative for financial technologies (Fintech) regulatory sandbox, Oman News Agency reported.

The CBO participated in the New Age Banking Summit 2022 which discusses transformations in the financial sector, developments in financial technology, and achieving financial inclusion.

H E Amri stressed that the CBO is committed to supporting innovation and modernization in the financial sector in line with ensuring financial stability. He also stressed the importance of investing in cybersecurity techniques and investing in human capital to overcome cybersecurity challenges.

Central banks in many countries are looking to develop digital currencies amid growing popularity and acceptance of digital assets and cryptocurrencies. However, the development of the Central Bank Digital Currency (CBDC) is still at an introductory stage in the world.

India’s central bank this week said that it is engaged in the introduction of a Central Bank Digital Currency (CBDC). The Reserve Bank of India has proposed to adopt a graded approach for the introduction of digital currency in India.

The key benefits of retail CBDCs, according to Fitch Ratings, lie in their potential to enhance authority-backed cashless payments with innovations in step with the wider digitalisation of society.

For central banks in some emerging markets, a key driver for researching CBDCs is the opportunity to bring underbanked communities into the financial system, and improve the cost, speed and resilience of payments, Fitch had said in a note.

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