Friday, October 7, 2022

Qatar Central Bank the Latest Apex Bank to Join the CBDC Bandwagon

Qatar Central Bank (QCB) has declared its intention to join the fast-moving race for the ownership of a Central Bank Digital Currency (CBDC). The financial headquarters is phasing towards digitizing most of its products and services and one of such operations QCB plans to undergo is issuing a CBDC.

During the 8th Doha Islamic Finance Conference, Alanood Abdullah Al Muftah, Head of the QCB Financial Technology department told The Peninsula that the central bank will soon deliver on fintech products in a few months as they are gradually moving their focus to that sector.

Qatar Central Bank is not the only Central Arab bank considering the launch of a CBDC. From reports, a lot of the central banks have intentions of launching their CBDC. With the rate at which studies and research are currently going on, it has been envisaged that two Central Arab banks will come up with their central bank digital currency within the next three years.

The impact of a central bank digital currency on the financial market and the economy is amongst all that the country is considering in its study. The QCB will come up with its digital license which will be given as a form of authorization to crypto firms that wish to trade in Qatar. This will assist in the regularization of the activities of the firms and market instability.

Dukhan bank Chief Operations and Digital Officer, Narayanan Srinivasan mentioned that the bank is considering the establishment of a digital bank in Qatar, although, this is currently in the reasoning phase. Alongside this, the bank is also looking at other blockchain technology it could explore on its platform including making use of crypto for its payment services.

Central Bank Digital Currency Launch on Global Rush

Globally, the research on CBDC is fast becoming a major trend in the broader crypto ecosystem. Bangko Sentral ng Pilipinas (BSP), the Central Bank of the Philippines is in the process of launching a research program on CBDC, primarily as BSP aspires to delve into wholesale CBDC.

In line with this trend, the Bank of Canada recently collaborated with the Massachusetts Institute of Technology (MIT) to conduct CBDC research. The technology institute is checking out techniques to upscale the technology employed on the launch of a functional CBDC. 

Qatar Central Bank is still researching and testing all possible strategies and fixing policies for the launch of its CBDC.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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