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Qatar is doubling down on its CBDC plans

The Governor of the Central Bank of Qatar – Sheikh Bandar – announced that the financial institution intends to issue a digital form of its national currency. To do so, it needs to find the appropriate technology and consider the possible pros and cons of such an initiative, he added.

Still in the founding phase

Launching a CBDC has become a mission for numerous global central banks, and Qatar appears to be part of that club. During a recent appearance, Governor Bandar asserted that such a development is on the agenda, but that it will be thoroughly examined beforehand:

“Many central banks are now considering issuance of CBDC and we are no exception. But we are still in the start-up phase. We are evaluating the pros and cons of issuing CBDC and finding the right and right technology and platform to issue our CBDC.”

The governor also rose cryptocurrencies and the benefits they might offer. In his view, they are a “technological innovation” that has the potential to usher in a new era of “faster, cheaper and more accessible financial services.”

“However, those crypto assets that are not underlined by the monetary authority may be less credible,” he warned.

However, it’s worth noting that the Qatar Investment Authority doesn’t think too highly of digital assets. Still, CEO Mansoor Al Mahmoud said earlier this week the organization is intrigued by its underlying mechanism – the Blockchain-Technology:

“Our technology team is exploring possibilities in the blockchain. This is the space that interests us, not the currency itself.”

Qatar’s path to digitization

The Central Bank of Qatar unveiled its plans to digitize most of its products in March this year. Alanood Abdullah Al Muftah – Head of FinTech at the institution – explained at the time:

“We try to examine the different aspects and industries of fintech. We try to set our direction. Every central bank should study digital banks considering their growing importance in the global market.”

He further stated the bank’s intention to launch a CBDC, but such an endeavor is far from operational. Authorities need to assess how the product might affect the local financial landscape and then take action, Al Muftah said.

Narayanan Srinivasan — COO and digital officer at Dukhan Bank — also added his two cents, saying his organization is ready to launch a digital bank in Qatar. The use of blockchain technology for certain payment services is another goal to be achieved, he concluded.

Source: Crypto News Deutsch

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