The Qatar Central Bank (QCB) launched on Sunday its Digital Currency Project (CBDC), which aims to settle large payments with a group of local and international banks, the bank said in a statement carried by the Qatari state news agency, QNA.
The CBDC was launched after successfully completing the comprehensive study of the project.
It will serve as a proactive step to keep pace with the rapid global developments in this field.
The Central Bank explained that after successfully completing the comprehensive study conducted in this field, it will proceed with testing and developing selected applications for the CBDC to settle large payments with a group of local and international banks in a trial environment designed according to the latest advanced technologies.
The project will focus on the applications of the CBDC to increase access to capital markets for operating banks in the country, enhance domestic settlement, and improve the efficiency of securities transactions, the Bank’s statement noted.
This project, which will enter its first experimental phase extending to October 2024, aims to also achieve a set of primary objectives, including leveraging artificial intelligence technologies, distributed ledger technology (DLT), and emerging technologies and establish a strong foundation to enhance liquidity by expanding participation in financial market facilities, considering the aspects related to information security during project implementation.
The start of the CBDC project represents an important milestone and a strategic step towards building a digital economy in the country, QCB said.
It then reaffirmed its continuous commitment to introducing distinguished and valuable initiatives that will help create a conducive environment for the growth of the financial sector, stimulate the widespread adoption of emerging technologies, and promote technological innovations across various fields.
Last April, the United Arab Emirates prepared to complete the first phase of its central bank digital currency strategy. The Digital Dirham aims to address the obstructions of domestic and cross-border payments, enhance financial inclusion and the move towards a cashless society.
In 2019, Saudi Central Bank (SAMA) and Central Bank of the UAE (CBUAE) announced a joint digital currency initiative named Project Aber.
The two banks said Aber will be used as a settlement unit for domestic as well as cross-border commercial bank transactions between the UAE and Saudi Arabia. The joint digital currency plan is only for the use of banks participating in “Aber” project, and will not be available for individuals.
