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Blockchain Technology in Saudi Arabia: New $6.4 Billion Project

Blockchain Technology in Saudi Arabia—Today, Saudi Arabia said it would invest billions of dollars in cutting-edge technology.

The monarchy plans to spend a total of over $6.4 billion on the project. The NEOM Tech & Digital Company, named after the futuristic Saudi Arabian city of the same name, received a $1 billion investment as part of this deal. According to the official Saudi Press Agency, the corporation intends to develop its metaverse, a 3D digital world in which users can interact with one another.

One billion dollars will be invested in Prosperity7 Ventures by Saudi Arabia’s state-owned oil company Aramco. According to the agency, by focusing on future technology, including blockchains, the company plans to invest. Encryption of digitally stored data is possible with the use of this technology.

In a statement, Saudi Arabia’s Information Technology Minister Abdullah Alswaha referred to the investments as a “push toward the growth of the digital economy.” According to the Saudi Press Agency, he stressed that the initiative would be “for the better good” of Saudis and others in the Middle East and North Africa.

The statement was made at the LEAP technology event, which is presently taking place in Riyadh, the capital of Saudi Arabia. At the conference, an array of cutting-edge technologies will be discussed, including artificial intelligence, 5G internet, and more.

Saudi Arabia is making efforts to lessen its reliance on foreign oil. People and governments worldwide are turning away from oil in favor of cleaner types of renewable energy, even as oil prices continue to rise. For a long time, Saudi Arabia’s revenue has been derived solely from the sale of oil. Crown Prince Mohammed bin Salman’s Vision 2030 plan aims to diversify the economy by focusing on emerging technology.

Some progress has been made in its efforts to diversify its economy. At the end of 2021, Saudi Arabia reported an increase in non-oil exports and mineral production. Although it has been criticized for its lack of openness, Saudi Arabia’s Public Investment Fund has invested billions in Silicon Valley firms.

Foreign Affairs writer Karen Young wrote this week that Saudi Arabia’s leaders have been unable to attract significant investment to the Kingdom and that its financial reserves have been significantly depleted as a result.

The BSV Blockchain Association, in partnership with Saudi Arabia’s Ministry of Communications and Information Technology, warmly welcomes you to understand how blockchain technology can help Saudi Vision 2030 come to fruition.

Insights on the “new oil” of data, use cases for blockchain, and tips on how to begin the blockchain journey will be presented at this exciting event.

The event is powered by the BSV blockchain, which has attracted worldwide attention for its vast scale, rapid expansion, and impressive technical capabilities. To meet the large-scale demands of the government, business, and the Kingdom of Saudi Arabia, BSV is the best blockchain to use today.

Blockchain Technology in Saudi Arabia: Why Invest In It?

Blockchain is a cutting-edge internet-based technology that uses distributed ledgers to create digital blocks. The debut of Bitcoin in 2009 demonstrated that blockchain is a real-world technology and not just a theoretical concept. It’s only been a matter of time until other businesses begin testing their ideas on using blockchain technology.

Blockchain technology is being used by major corporations, government agencies, and non-profit organizations to improve old procedures and create new business models.

While there are several advantages to using a blockchain, the most important is its ability to securely and quickly distribute data across multiple parties.

Ayman Omar, an associate professor at American University’s Department of Information Technology & Analytics and a research fellow at the Kogod Cybersecurity Governance Center, explained, “It’s a ledger of transactions with unique characteristics, and those characteristics help address problems in our systems and processes.” With the advent of the blockchain, trust can be built between previously distrusted parties. 

The outcome is a willingness to engage in transactions or data sharing that they might not have otherwise done or required an intermediary to do. One of the most frequently touted advantages of blockchain is its ability to enable trust. Early blockchain use cases demonstrate its usefulness in facilitating transactions between entities with no direct relationship but needed to share data or make payments. In the context of blockchain technology, Bitcoin and cryptocurrencies generally serve as illustrative examples of how trust can be built between strangers.

Tracking financial transactions and the transfer of tangible assets, such as property, and keeping track of health records and other personal data, is possible through the use of this system.

When Satoshi Nakamoto developed bitcoin as digital money in 2008, blockchain technology became widely known and famous.

In practice, such technology is cost-effective and efficient since transactions may be completed without the need for intermediaries such as banks. As a result, transaction costs can be reduced.

Since the data or information in the blocks has been recorded to make modifying it difficult without authorization from the parties involved in a transaction, it has also been proven as a safe and secure technology to use.

Chaining blocks together is made possible by Distributed Ledger Technology (DLT).

A few thousand transactions can fit in a single block, depending on how big the transactions are.

Blockchain technology is being used by the Saudi Arabian Monetary Authority (SAMA) to deposit some of the liquidity it had previously promised to put into the banking industry. SAMA’s goal is to stay up with the global trend of central banks by using such innovative technology.

As a result of this shift, SAMA will continue researching, experimenting, and evaluating the financial sector’s impact on emerging technologies.

SAMA’s central bank is experimenting with money transfers on the blockchain for the first time. SAMA plans to use this move as a springboard to promote financial technology throughout the Kingdom.

Fintech Saudi Initiative, SAMA Regulatory Sandbox, and various digital financial services and payments are just a few SAMA’s other initiatives.

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