Thursday, March 28, 2024

Qatar exploring digital banks and central bank digital currencies

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The Qatar Central Financial institution (QCB) is reportedly investigating the potential for launching a digital forex and issuing digital financial institution licenses. 

In accordance with the pinnacle of the fintech part at QCB, Alanood Abdullah Al Muftah, the central financial institution is expected to set a course for its future focus quickly on a spread of fintech verticals. 

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Al Muftah famous that QCB may even decide whether or not Qatar can set up a central financial institution digital forex (CBDC). She defined:

“Every central financial institution ought to research digital banks, contemplating their rising significance within the world market. We additionally see the course of the market transferring towards having a digital forex. Nonetheless, it is nonetheless being studied whether or not we’re having a digital forex or not.”

Whereas commenting on Qatar’s regulatory sandbox, Al Muftah mentioned that three corporations within the funds sector are at present testing options with the central financial institution. She additionally acknowledged that the QCB is contemplating different corporations involved in using the regulatory sandbox.

A regulatory sandbox is an area by which fintech corporations can check new merchandise, providers, enterprise fashions and supply mechanisms in a real-world setting whereas benefiting from an accelerated authorization course of and supervisory monitoring.

Non-public Qatari financial institution Dukhan Financial institution, in the meantime, is analyzing the potential for making a digital financial institution in Qatar, its chief operations and digital officer Narayanan Srinivasan instructed The Peninsula. Nonetheless, Srinivasan warned that his establishment would solely construct a digital financial institution after a greater understanding of its economics. As per the report, Dukhan Financial institution can also be contemplating blockchain know-how within the funds sector.

Associated: The Philippines to launch pilot CBDC implementation

Though non-public digital currencies like Bitcoin (BTC) have grown in recognition and followers, government-backed CBDCs, frequently regarded as an antithesis to personal cryptocurrencies, have been accelerating quickly. According to information from the Atlantic Council, as of June 2019, 87 nations are at present growing their very own digital forex, with solely 14 having accomplished the pilot part. 9 nations have already carried out a CBDC.