By Nathan Ferguson
Oman is working to launch its own digital currency, the Chief Executive Officer of the central bank, Oman Tahir bin Salem al-Omeri, announced on the opening ceremony of the “New Age of Banking” conference in Muscat. The CEO Al-Omeri said that the Central Bank of Oman is determined to provide services and innovative backing that will help in modernizing the economic sector and ensuring economic stability.
There are many concerns and suspicions regarding crypto in Oman, such as cryptocurrencies have high risks of unstable value and also could be used in cyber scams and piracy. As digital technology has advanced in the Gulf, this thinking has changed.
Importance of Innovative Technology
Al-Omeri, Chief Executive Officer of the Central Bank of Oman, pointed out that investment in innovative technology and human capital is necessary to deal with challenges regarding cyber security. According to Al-Omeri, technical progress has brought dramatic changes in economic services, in terms of items, style and services.
This digital change accelerated due to COVID-19 especially in the system of payments and settlements. The point of sale has increased from 24M to 115M in Oman in the last five years, while there has seen an increase in e-commerce transactions from 0.3% in 2017 to nearly 32M at the end of 2021.
Many countries are trying to launch their own Digital Currencies
It’s not only happening in Oman, but many central banks of different countries are trying to launch their digital currency. While officials have wanted the public to be careful in the matter of digital currencies, on the other hand, they welcomed blockchain technologies in the country. The authorities wanted to save the public from any kinds of inconvenience.
Dhofar is one of the biggest banks in Oman, which has done an experiment with blockchain technologies utilizing Ripple Net technology of Ripple to enable quick and low-cost cross-border payment to India.
There is a plus point for the central banks of different countries in the world in the emerging markets for developing Central Bank Digital currency is that they provide the chances to bring under banked people into the financial system. This key factor for the central banks can be helpful in improving the speed and price of payment.