Qatar will join many nations testing the idea of central bank digital currency (CBDC). The Qatar CBDC is now “in the foundation stage” of issuance by the Qatar Central Bank (QCB).
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 was exploring the idea due to the current worldwide trend.
Qatar CBDC is in the works
QCB Governor Sheikh Bandar bin Mohammed bin Saoud Al Thani disclosed that the bank is looking for technological solutions for its CBDC on Tuesday during the “Inflation Test” session at the Qatar Economic Forum. The project is currently in its early stages.
“Many central banks are now considering to issue CBDC, and we are not an exception to that,” Al Thani said. “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 is a technology innovation. It might take us to new era of fast, cheap, and more accessible financial services,” he added. “However, those crypto assets which are not underlined by monetary authority might be less credible.”
Countries race to develop CBDCs
Currently, over 100 countries have expressed interest in CBDCs and begun research and development. The United Arab Emirates, Qatar’s primary Gulf opponent, began its CBDC track in 2021 as part of its 2023–2026 tech plan.
The same year, it announced a cross-border CBDC payment project with Thailand’s, Hong Kong’s, and China’s central banks, as well as the Bank of International Settlements.