Qatar’s central bank is planning to digitize most of its products after studying the possibility of developing and launching a CBDC in the near future. In addition, the institution has also issued guidelines with regard to digital banking licenses.
Speaking to The Peninsula reports that Alanood Abdullah Al-Muftah, the head of the fintech section at the Qatar central bank, spoke on the sidelines of the 8th Doha Islamic Finance Conference last week. He said that the bank would soon have a plan on its future focus, particularly on the different fintech verticals inside Finance.
We’re trying to study the different aspects and verticals of fintech. We’re trying to set our direction. Each central bank should study digital banks, considering their growing significance in the global market. We also see the direction of the market moving towards having a digital currency. However, it’s still being studied whether we’re having a digital currency or not.
Alanood Abdullah Al-Muftah, Head of Fintech – Qatar central bank
An International Monetary Fund (IMF) study found that 76% of Arab central banks are increasingly showing interest in adopting digital currencies. Qatar’s vision is in line with that of the International Monetary Fund (IMF).
Meanwhile, Narayanan Srinivasan, Chief Operating Officer and Digital Officer at Dukhan Bank, also stated during the same conference that his bank is hoping to establish a digital bank in Qatar. Aside from that, the company plans to use blockchain technology for certain payment services as well.
Digital currencies are increasingly being adopted by countries worldwide. Early this month, Jamaica’s central bank announced it would distribute $16 worth of its CBDC to the first 100,000 citizens who set up an online wallet by April 1.
A CBDC is also being explored by the central bank of Canada, while a CBDC in India is expected to become operational by the end of this year.
While other countries have kept up with the race, the U.S. has fallen behind. Over the years, the country has been indecisive about whether it should establish a CBDC.
