- QCB completed the infrastructure for its CBDC project, signaling a move towards digital transformation.
- Around 70% of central banks aim to issue CBDCs within the next decade, says SWIFT China President.
The infrastructure for Qatar Central Bank’s Central Bank Digital Currency Project (CBDC) has been successfully finished, the bank said. This project is a proactive attempt to stay up-to-date with the fast advancements in finance and digital currencies worldwide.
After conducting a thorough investigation, QCB will test the CBDC and develop some applications. These applications are meant to settle large sums of money with both domestic and foreign banks in a trial setting created with the newest cutting-edge technology.
Through this project, operational banks in Qatar could have easier access to capital markets, better domestic settlement, and more efficient securities transactions.
Phase One: Leveraging AI and DLT
The project will first go through an experimental phase that runs until October 2024, during which time distributed ledger technology (DLT), artificial intelligence (AI), and other new technologies will be used. Assuring information security during the implementation, the aim is to lay a solid basis to improve liquidity by increasing involvement in financial market facilities.
The efforts of QCB to build the CBDC infrastructure are in line with the Fintech Strategy, the Third Financial Sector Strategy, and Qatar National Vision 2030.
The bank stresses the need to make investments in cutting edge technology to create a trailblazing system that quickens digital transformation in accordance with the Third National Development Strategy 2024–2030.
Implications for the Financial Sector
For QCB, the CBDC initiative represents a major turning point in its complete dedication to digital transformation in the financial industry. In Qatar, this calculated move is meant to develop a strong digital economy.
The bank is still committed to bringing in worthwhile programs that support the expansion of the financial industry, encourage the use of new technology, and advance technological advancements in a variety of industries.
Finding the several use cases that QCB will adopt in the future will depend heavily on the outcomes of this trial. This will help to make the present systems more efficient and allow for quick settlement.
ETHNews has previously covered conjecture on Qatar’s possible Bitcoin investment, which would result in more acceptance and integration into conventional banking systems.
On the other hand, the president of SWIFT China discussed cross-border CBDCs, pointing out that about 70% of central banks plan to issue them in the next ten years.