Qatar Central Bank (QCB) has successfully launched its Central Bank Digital Currency (CBDC) project, utilizing Distributed Ledger Technologies (DLT) and Artificial Intelligence (AI) technology. This milestone marks a significant step towards developing Qatar’s digital economy. Now, the bank will focus on creating custom applications and testing the CBDC for large-scale payment settlements with both local and international banks.
The QCB sees this accomplishment as a crucial part of Qatar’s Third Financial Sector Strategy, Fintech Strategy, and Qatar National Vision 2030. The development of the CBDC aims to enhance liquidity in the Qatari economy and expand the country’s involvement in the financial markets.
Following thorough research and analysis, the QCB will proceed with testing and developing specific applications for the CBDC. This trial phase will involve settling large payments with a selection of local and international banks in an environment designed with the latest advanced technologies.
Qatar’s experimental phase of the CBDC project is scheduled to begin in October of this year. The country will leverage AI, DLT, and other emerging technologies during this phase. The results of this experiment will be vital in identifying various use cases that the QCB will adopt in the future, improving the efficiency of existing systems and facilitating instant settlement.
Furthermore, the Qatar Central Bank is actively identifying additional use cases that will be implemented in the future to further enhance system efficiency and instant settlement. This commitment emphasizes the bank’s dedication to fostering a conducive environment for economic growth and the adoption of emerging technologies.
In becoming the second Arabic nation, following the UAE, to enter the experimentation phase of CBDC development, Qatar is making significant progress in its digital currency program. The UAE made history by completing a transaction in late January 2024, sending digital dirhams worth $13.6 million to China through the mBridge cross-border transfer network, which connects the apex banks of Thailand, China, Hong Kong, and the UAE.
This news was reported by Lara Abdul Malak for Cryptopolitan.