Qatar central bank is looking into platforms and technology options for its own digital currency. The initiative is now in its early stages.
Qatar, a country of 2.8 million people, will join a growing number of nations that are experimenting with the idea of central bank digital currency (CBDC). The issuance of the digital currency by the Qatar Central Bank (QCB) is currently “in the foundation stage”
The governor of the Qatar Central Bank (QCB), Sheikh Bandar bin Mohammed bin Saoud Al Thani, disclosed that the bank is looking for technology solutions for the CBDC on June 21 during the “Inflation Test” session at the Qatar Economic Forum. Al Thani explained that the initiative is now in its early stages:
“Many central banks are now considering to issue CBDC, and we are not an exception to that. But we are still in foundation stage. We are evaluating the pros and cons of issuing CBDC and to find the proper and the right technology and platform to issue our CBDC.”
“Currently, crypto are a technology innovation. It might take us to new era of fast, cheap, and more accessible financial services. However, those crypto assets which are not underlined by monetary authority might be less credible,” he added.
In March 2022, the first news regarding the QCB considering CBDCs surfaced. Back then, Alanood Abdullah Al Muftah, the head of QCB’s fintech division, revealed that the bank is investigating the idea due to the current worldwide trend.
More than 100 nations have currently expressed interest in, begun to explore, and/or develop CBDCs. United Arab Emirates, Qatar’s primary Gulf rival, introduced the CBDC track in 2021 as a component of its technology strategy for the years 2023–2026.
The central banks of Thailand, Hong Kong, and China, as well as the Bank for International Settlements, all participated in the same year’s announcement of a collaborative project for cross-border CBDC payments.
