Qatar exploring digital banks and central bank digital currencies

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The Qatar Central Financial institution (QCB) is reportedly investigating the potential of launching a digital forex and issuing digital financial institution licenses. 

In response to the pinnacle of the fintech part at QCB, Alanood Abdullah Al Muftah, the central financial institution is expected to set a route for its future focus quickly on a variety of fintech verticals. 

Al Muftah famous that QCB may even decide whether or not Qatar can set up a central financial institution digital forex (CBDC). She defined:

“Every central financial institution ought to research digital banks, contemplating their rising significance within the world market. We additionally see the route of the market shifting in direction of having a digital forex. Nonetheless, it is nonetheless being studied whether or not we’re having a digital forex or not.”

Whereas commenting on Qatar’s regulatory sandbox, Al Muftah mentioned that three companies within the funds sector are presently testing options with the central financial institution. She additionally said that the QCB is contemplating different companies fascinated about using the regulatory sandbox.

A regulatory sandbox is an area during which fintech companies can take a look at new merchandise, companies, enterprise fashions, and supply mechanisms in a real-world setting whereas benefiting from an accelerated authorization course of and supervisory monitoring.

Personal Qatari financial institution Dukhan Financial institution, in the meantime, is analyzing the potential of making a digital financial institution in Qatar, its chief operations and digital officer Narayanan Srinivasan advised The Peninsula. Nonetheless, Srinivasan warned that his establishment would solely construct a digital financial institution after a greater understanding of its economics. As per the report, Dukhan Financial institution can be contemplating blockchain know-how within the funds sector.

Associated: The Philippines to launch pilot CBDC implementation

Though non-public digital currencies like Bitcoin (BTC) have grown in reputation and followers, government-backed CBDCs, often considered an antithesis to non-public cryptocurrencies, have been accelerating quickly. In response to data from the Atlantic Council, as of June 2019, 87 nations are presently creating their very own digital forex, with solely 14 having accomplished the pilot section. 9 international locations have already carried out a CBDC. .