The Qatar Central Bank (QCB) announced on Sunday the successful completion of the infrastructure development for its Central Bank Digital Currency (CBDC) Project. This strategic move positions Qatar to keep pace with the rapid global advancements in digital currencies.
Following an extensive study in the field, QCB confirmed that it will advance to the next phase, which involves testing and developing specific applications for the CBDC. These trials, designed using the latest advanced technologies, will involve a select group of local and international banks to settle large payments.
The project aims to improve access to capital markets for domestic banks, enhance local settlement processes, and increase the efficiency of securities transactions. Entering its first experimental phase, which will extend to October 2024, the initiative will leverage artificial intelligence, distributed ledger technology (DLT), and other emerging technologies. Additionally, it will establish a robust foundation to enhance liquidity by expanding participation in financial market facilities, while prioritising information security.
This development aligns with Qatar’s Third Financial Sector Strategy, the Fintech Strategy, and Qatar National Vision 2030. It underscores QCB’s ongoing efforts to regulate and develop the financial sector in the country. The bank emphasised the importance of investing in modern technologies to build a pioneering system that embraces emerging technologies and accelerates digital transformation, in line with the Third National Development Strategy 2024-2030.
QCB reiterated its commitment to staying abreast of the digital transformations sweeping the financial and banking sector, both regionally and globally. The initiation of the CBDC project marks a significant milestone and a strategic step towards building a digital economy in Qatar.
Furthermore, QCB reaffirmed its dedication to introducing valuable initiatives aimed at fostering a conducive environment for the financial sector’s growth, stimulating the widespread adoption of emerging technologies, and promoting technological innovation across various fields.
In conclusion, QCB noted that the outcomes of this experimental phase will be crucial in identifying future use cases for the CBDC. These results will contribute to enhancing the efficiency of existing systems and facilitate instant settlement.
This announcement was made through a press release by QCB, reflecting the bank’s commitment to advancing Qatar’s digital transformation within the financial sector.
