Qatar Central Bank (QCB) has completed the infrastructure for its Central Bank Digital Currency (CBDC) project, an important milestone towards building the country’s digital economy. The bank will now proceed to develop custom applications and test the CBDC for large payment settlements with local and International banks.
The QCB considers this achievement to be in alignment with the country’s Third Financial Sector Strategy, Fintech Strategy and Qatar National Vision 2030. The development of the CBDC is yet another move towards enhancing liquidity in the Qatari economy and expanding the country’s participation in the financial markets.
Qatar To Test CBDC for Large Settlements
After the successful completion of comprehensive studies on the project, the QCB will proceed with testing and developing selected applications for the CBDC to settle large payments with a group of local and international banks in a trial environment designed according to the latest advanced technologies.
In a release posted on X (formerly Twitter), the Qatar Central Bank stated that the project will focus on the applications of the CBDC to increase access to capital markets for operating banks in the country, enhance domestic settlement, and improve the efficiency of securities transactions.
Qatar Central Bank launches the digital currency project #Qatar_Central_Bank pic.twitter.com/DPjSbCiGgw
— مصرف قطر المركزي (@QCBQATAR) June 2, 2024
Qatar will commence the experimental phase of the CBDC project in October of this year. It will leverage technologies such as AI, Distributed Ledger Technologies (DLT) and other emerging tech.
“The results of this experiment will be the cornerstone towards identifying the different use cases that the QCB will adopt in the future, which will contribute to enhancing the efficiency of the current systems and instant settlement.”
Qatar Central Bank
QCB Will Adopt More Use Cases In the Future
The Qatar Central Bank noted that it is identifying other use cases that will be adopted in the future to enhance the efficiency of current systems and instant settlement. A statement that reaffirms the bank’s commitment to reeling out valuable initiatives poised at fostering a conducive environment for economic growth and the adoption of emerging technologies.
Also Read: UAE Central Bank launches Digital Dirham strategy for wholesale and retail use
With the experimental stage of the CBDC project set to commence soon, Qatar becomes the second Arabic nation, behind the UAE to reach the experimentation stage of its CBDC program. In a historic transaction in late January 2024, the UAE sent digital dirhams worth $13.6 million to China leveraging the mBridge cross-border transfer network, that currently connects the apex banks of Thailand, China, Hong Kong and the UAE.
Cryptopolitan reporting by Lara Abdul Malak
