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Contrary to what many people assume, Qatar is not among the countries hesitant to explore the central bank digital currency (CBDC). H E Sheikh Bandar bin Mohammed bin Saoud Al Thani, the governor of the Qatar Central Bank (QkCB) shared that the country’s central bank is currently in the initial stage of developing a CBDC.
The governor shared this in an interview session of the Qatar Economic Forum supported by Bloomberg. Further, he revealed that the QCB is currently working on analyzing the advantages and disadvantages of a CBDC while also exploring different design options.
Furthermore, the QCB Governor said that Qatar is not an exception as various central banks around the world either intend to issue CBDC or are considering it. However, he added that they are still in the initial state. The governor said the country is searching for the right technology and also evaluating the pros and cons of issuing a CBDC.
Commenting on Qatar’s plan for blockchain technology and digital currencies, he said that blockchain can help in the digital transformation of Qatar. The governor believes that digital assets have the potential to change the global financial sphere in the era of fast, cheap, and more accessible financial services, however, he also acknowledged their highly volatile nature which makes them risky assets.
The latest announcement is the confirmation of the plans that the country first shared in March. Alanood Abdullah Al Muftah, the QCB’s head of Fintech, disclosed that their country was exploring different technologies and prospects in its efforts to promote digital assets including CBDCs.
Meanwhile, the United Arab Emirates(UAE) could also be seen CBDC plans and crafting regulatory frameworks for its digital currency market.
Countries Around The World Wants To Explore CBDCs
The majority of central banks around the world are seriously exploring the digital form of their currencies. 28 pilot CBDCs and three live retail CBDCs have been launched globally, as per a recent report by the Bank for International Settlements (BIS).
90% of central banks globally are working on a CBDC. Enhanced financial inclusion, faster cross-border payments, 24/7 availability, and more efficiency have been the motivation behind the adoption of CBDCs.
Regulatory bodies such as the EU, the Bank of International Settlements (BIS), and the World Bank, have also been promoting the CBDC development. The BIS had pilots carry out tests of cross-border payments between central banks while the EU plans to issue a CBDC test.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
