The Qatar Central Bank (QCB) is reportedly investigating the possibility of launching a digital currency and issuing digital banking licences.
According to the head of the financial technology section of QCB, Alanod Abdullah Al Muftah, The central bank is expected to set a direction for its future focus on a variety of fintech verticals soon.
Al Muftah noted that QCB will also determine whether Qatar can establish a central bank digital currency (CBDC). She explained:
“Every central bank should study digital banks, considering their growing importance in the global market. We also see the market direction moving towards having a digital currency. However, whether we will have a digital currency or not is still being studied.”
Commenting on Qatar’s regulatory sandbox, Al Muftah said that three companies in the payment sector are currently testing solutions with the central bank. He also claimed that the QCB is considering other companies interested in using the regulatory sandbox.
A regulatory sandbox is a space where fintech companies can test new products, services, business models, and delivery mechanisms in a live environment while benefiting from an expedited authorization process and supervisory monitoring.
In the meantime, Qatari private bank Dukhan Bank is examining the possibility of creating a digital bank in Qatar, its chief operating officer and digital officer Narayanan Srinivasan told The Peninsula.. However, Srinivasan cautioned that his institution would only build a digital bank after a better understanding of his economics. According to the report, Dukhan Bank is also considering blockchain technology in the payments sector.
Although private virtual currencies like Bitcoin (BTC) have gained popularity and a following, government-backed CBDCs are often seen as the antithesis of private cryptocurrencies., have accelerated rapidly. According to data from the Atlantic Council, as of June 2019, 87 countries are currently developing their own digital currency, with only 14 having completed the pilot phase. Nine countries have already implemented a CBDC.
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