Currency

Saudi Arabia’s move towards a cash less economy propelled by COVID-19

The past decade has witnessed a large amount of technological disruption that has changed the way we interact with the world. The payments universe is not averse to this disruption, with the usage of cash diminishing by the day. The world has begun the transition towards a more cashless society, with mobile devices, digital wallets and other forms of payments gaining preference among users. A cashless society is one where all the financial transactions take place through transfer of digital...

Bitcoins – What’s the story now?

Last year we had published a report (Disruptive Technology: Bitcoins) on the emerging technology of bitcoins. At the time of writing that report, the value of one bitcoin had reached an all-time high of $979 against the US dollar and was touted as an important tool in the future of finance. However, one year down the line, things are not looking bright for bitcoins. It started with the closure of Mt.Gox; one of the biggest bitcoin exchanges and  was followed...

Implications of removing Currency Peg for GCC

Key Questions What is currency pegging? Why do countries opt for it? When a country fixes the exchange rate of its currency to another country’s currency to control the value of a currency, it is known as currency pegging or "fixed exchange rate" or "pegged exchange rate". For example, if a country pegs its currency to the U.S. dollar, the value of its currency will be controlled so that it rises and falls with the dollar. The reason why countries...