Digital assets are witnessing unprecedented growth around the world. No one is left behind, Qatar is also gearing up to join the digital assets revolution. The Central Bank of Qatar is trying to enter the world of digital assets to digitize every transaction that takes place in the country. An official with the Central Bank of Qatar (QCB) said that the bank is currently reviewing the licensing of digital banks and digital currencies. The study will help QCB gain a better knowledge of its areas of focus, according to Alanood Abdullah Al Muftah, head of the bank’s fintech division.
QCB will also assess whether Qatar can launch a central bank digital currency (CBDC). A report in the English -language daily, The Peninsula, quoted Al Muftah as saying that the study would look into various aspects and sectors of fintech, and also examine whether CBDC is possible for Qatar.
He added that in the next few months, the path will become clearer. Currently, banks are researching various elements and verticals of fintech and trying to figure out where they want to go. In the coming months, there will be a better understanding of QCB’s future focus.
He further noted that they see the market heading towards owning a digital currency, but added that whether they will have a digital currency or not is still under study.
Dukhan Bank, a private Qatari bank, is studying the possibility of setting up a digital bank in the country. The same report quoted Narayanan Srinivasan, Chief Operating and Digital Officer at Dukhan Bank, who said that his institution was considering setting up a digital bank in Qatar, but added that they were “still at the thinking stage”.
While private cryptocurrencies like Bitcoin are very popular, the government -backed CBDC, which is often seen as the antithesis to such cryptocurrencies, has grown rapidly in popularity.
The CBDC is the country’s fiat currency in digital form and is managed by the country’s central bank. As of March 2022, 87 countries are considering issuing CDBCs.