According to report, Oman is working on its first CBDC. Oman Taher bin Salem al-Omari, the Central Bank of Oman’s (CBO) CEO, announced the possibility of a CBDC, the digital Omani. He made the announcement at a conference dubbed “New Age of Banking.”
Meanwhile, the country remains skeptical of digital currencies. This is because of the instability surrounding the crypto market.
Al-Omari noted that the CBO is committed to innovative development and services. Also, it believes that it can bring modernization and stability to the financial sector.
In Oman, a cloud of uncertainty and suspicion surrounds the usage of digital assets. This is due to the high risk and instability posed by these assets.
Another issue is the problem of cyber fraud. However, there have been various reforms and regulations to curb the issue of fraud.
Oman And Investment In Blockchain Technology
The CEO of the CBO applauded the importance of investment in blockchain technology. He believes this can help solve the problem of cybersecurity.
Al-Omari noted that tech development has led to the increased change in its financial services. This development is in terms of design, services, and products.
Usage of digital currencies for settlement of payments has increased. Thanks to the accelerated use of digital currencies during the lockdown.
Furthermore, POS (point-of-sale) transactions have increased in Oman. Statistics showed it has skyrocketed from 24 million to over 115 million. Besides, this is in the span of five years.
Also, e-commerce transactions are not left out. It has increased from 2017 to over 32 million in 2021.
Central Bank Digital Currency Worldwide
Globally, central banks in various nations are embracing the idea of electronic currency. While countries like China are already running pilot tests, others remain on the fence.
Although authorities remain skeptical about crypto, the case is different for CBDC. Even the IMF (International Monetary Fund) encourages countries to adopt environmentally friendly CBDC.
Also, the adoption of blockchain technology is increasing. For instance, the Dhofar Bank, a big bank in Oman, has started experimenting with blockchain tech.
Recently, the financial institution adopted RippleNet technology from RippleNet. This will allow for cheaper and faster payment across borders to India.
CBDC can help central banks provide financial inclusion for unbanked communities in upcoming markets. In addition, it can help to improve speed and cost of payment. However, the country has not given a date for issuing the CBDC.