Qatar Banks Start Exploring CBDC

Qatar is another country that decided to work on digital banking and central bank digital currency (CBDC). What’s more, the central bank is expected to develop a set of directions for the future focus on multiple fintech products.

Digital Currency and Licenses for Digital Banks

The Qatar Central Bank is investigating the possibility of creating a digital currency and issuing licenses for digital banks. Alanood Abdullah Al Muftah, the head of the fintech section at QCB, said that this institution will soon set up directions and focus on developing a variety of fintech products.

QCB also determines if Qatar can develop the central bank’s digital currency. Al Muftah explained that each central bank should explore digital banks, especially considering their increasing importance on the global market.

The QCB’s officer added that there’s a noticeable movement towards digital currencies, yet QCB still studies it.

Additionally, Al Muftah noted that three companies in the payment sector are working closely with the central bank and testing the systems out. Al Muftah says that the central bank is considering adding more organizations to the so-called regulatory sandbox.

The regulatory sandbox is a space where companies can safely test out new products, services, and business models and, at the same time, enjoy faster authorization processes and supervisory monitoring.

At the same time, one private bank is also exploring the possibility of creating a digital bank in Qatar. Still, this might be possible only after developing a deep understanding of how digital banks work.

Private digital currencies have grown in popularity, and the government-backed CBDCs are trying to catch up.