Sheikh Bandar, the governor of Qatar Central Bank, revealed that the bank is working towards the development and issuance of the national digital currency. As per the governor, research on the Central Bank Digital Currency or CBDC is one of the topmost priorities for the bank. For that, it must find suitable technology and consider the possible advantages and disadvantages of such a project.
A foundation stage of CBDC development
The development of a CBDC has become an objective for several central banks worldwide, and Qatar appears to be a member of that club. Recently, Governor Bandar stated that while such a development is on the schedule, it will first be carefully reviewed:
“We are still in the foundation stage. We are evaluating the pros and cons of issuing CBDC and finding the proper and the right technology and platform to issue our CBDC.”
Bandar noted the benefits of CBDCs by calling them “technology innovations” and stating that they have the potential to bring a “new era of fast, cheap, and more accessible financial services.” However, he went on to warn that the assets which are not underlined by monetary authority are less credible.
CBDCs have been majorly discussed within several countries’ central banks. While some, like China, have already rolled out the pilot version of their digital currency, some are dedicated to developing notable national digital currencies. As TheCoinRise reported in early June, the Reserve Bank of India, which is working hard to roll out a digital rupee, has announced to take a graded approach for release.
Moreover, in May, the Bank of Israel asked for public opinion on CBDCs and received a highly positive response, as we reported.
However, it is important to mention that Qatar Investment Authority does not hold digital assets in high regard. However, the bank is attracted by its underlying mechanism — blockchain technology, according to CEO Mansoor Al Mahmoud.