Qatar Central Bank Studying Digital Banks and CBDCs – Bitcoin News


Qatar Central Bank is currently examining the possibility of issuing digital currency as well as digital banking licensing, an official said. The official adds that this study will help the central bank to understand what its focus should be.

The Growing Meaning of CBDC

An official from the Qatar Central Bank (QCB) said the institution is currently studying digital banking licensing as well as digital currencies. The official, Alanood Abdullah Al Muftah, the head of the bank’s fintech division, adds that the study will enable the QCB to gain a better understanding of what its focus should be.

In her remarks to The Peninsula, Al Muftah said the study would explore “the different aspects and verticals of fintech.” The study will also determine whether it is feasible for Qatar to have a central bank digital currency (CBDC) or not.

“It simply came to our notice then [a] greater understanding of the future focus of [the] QCB. Every central bank should study digital banking, given their growing significance in the global market. We also see that the direction of the market is moving towards having a digital currency. However, it is still being studied whether we have digital currency or not, ”Al Muftah was quoted as saying.

As for Qatar’s regulatory sandbox, QCB’s fintech chief revealed that three start-ups operating in the payment sector are already testing solutions with the central bank. She said the QCB is also evaluating more companies that want to operate in the regulatory sandbox.

Dukhan Bank’s Digital Banking Plans

Meanwhile, Narayanan Srinivasan, the chief operating and digital officer at Dukhan Bank, is quoted in the same report revealing that his bank is weighing the possibility of launching a digital bank in Qatar. Srinivasan, however, warns that his bank will only set up the digital bank when there is a better understanding of the economy behind this. He said:

We don’t want to rush through this. We need to figure out the economy behind it. Unfortunately, there aren’t too many use cases, either in the form of success or failure, for us to quickly decide that this is something we can do. We need to figure out how we actually bring this to market.

In addition to considering launching a digital bank, Dukhan Bank is also investigating the blockchain, the report said.

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Terence Zimwara

Terence Zimwara is a Zimbabwean award-winning journalist, author and writer. He has written extensively on the economic problems of some African countries and also how digital currencies can provide Africans with an escape route.

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