Home News Kuwait plans to launch national payment system and digital currency

Kuwait plans to launch national payment system and digital currency

The Central Bank of Kuwait (CBK) plans to launch a national payment system. It will comprise various elements including electronic banking system, wages protection system, digital currency, and automated clearing house.

The oncoming establishment of the Kuwait National Payment System (KNPS) was announced by the CBK governor Dr. Mohammad Y. Al-Hashel. According to his words, the KNPS will be rolled out in two phases in 2019 and 2020.

“Each initiative is designed to enhance the stability and efficiency of the financial system, and build the necessary infrastructure to address future needs,” – Al-Hashel specified.

As reported by the official, the electronic banking system designed to replace a paper-based process has already been released.

Al-Hashel stressed Kuwait’s eagerness to join the global trend for launching national cryptocurrencies backed up by related infrastructure.

“In case the Central Bank of Kuwait decides to issue digital currency in the future, we will have the tools ready to go live. In addition to e-wallets, this includes a Digital Kuwaiti Dinar, which will facilitate exchange against tokenised assets,” – he explained.

CBK governor also mentioned the country’s intention to build a “regulatory sandbox” for startups.

It is worth noting that Kuwait is not the only country in the region to proceed with blockchain-related initiatives. As reported last month, Saudi Arabia and United Arab Emirates (UAE) joined their efforts to launch a cryptocurrency of their own as well.

Earlier in November, Dubai authorities presented a state blockchain platform developed in collaboration with IBM. The platform is designed to facilitate the development and implementation of blockchain apps and convert public administration and state services to distributed ledger technology (DLT).