Qatar Central Bank Studying Digital Banks and CBDCs – Bitcoin News

An official said that the Qatar Central Bank is currently looking into whether to issue a digital currency and license digital banks. This study, according to the official, will allow the bank to understand its focus.

CBDC’s Growing Importance

Officials from the Qatar Central Bank (QCB), have stated that the bank is currently studying both digital currency and digital banking licensing. The official, Alanood Abdullah Al Muftah, the head of the bank’s fintech division, adds the study will enable the QCB to gain a better understanding of what its area of focus should be.

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

“In the next couple of months, there will be [a]More understanding regarding the future focus [the] QCB. QCB. The market is moving in the right direction towards a digital currency. However, it’s still being studied whether we’re having a digital currency or not,” Al Muftah is quoted explaining.

Concerning Qatar’s regulatory sandbox, QCB’s head of fintech revealed that three startups, which operate in the payments sector, are already testing solutions with the central bank. The QCB continues to evaluate more potential companies for the regulatory sandbox.

Dukhan Bank’s Digital Bank Plans

In the meantime, Narayanan Srinivasan (chief operations and digital officer of Dukhan Bank) is mentioned in the report, revealing that the bank is considering the launch of a digital bank to be established in Qatar. Srinivasan warns however that the bank won’t open a digital bank until they have a deeper understanding of the economics. According to him:

This is not something we want to do in a hurry. This requires us to analyze the economics. There aren’t many examples of success, or failures, to help us quickly determine that this is something we can do. This is where we need to think about how to actually bring this product to market.

Dukhan Bank also considers launching a digital banking institution, as well, said the report.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.