Qatar Central Bank Studying Digital Banks and CBDCs – According to a Qatar Central Bank official, the bank is now looking at the prospect of establishing a digital currency as well as digital bank licenses.
The Qatar Central Bank (QCB) is now researching digital bank licensing as well as digital currencies, according to a QCB official. The head of the bank’s fintech division, Alanood Abdullah Al Muftah, says that the study will help the QCB better understand what its areas of focus should be.
Al Muftah said in an interview with The Peninsula that the study will look into “the various facets and verticals of fintech.” The study will also examine whether a central bank digital currency (CBDC) is possible for Qatar.
“Within the next several months, there will be a consensus on the QCB’s future focus.” Given the growing importance of digital banks in the global market, each central bank should investigate them.
We also see the market heading in the direction of having a digital currency. However, whether we will have a digital currency or not is still being researched,” Al Muftah remarked.
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In regards to Qatar’s regulatory sandbox, the QCB’s head of fintech disclosed that three payments-related businesses are now evaluating solutions with the central bank. According to her, the QCB is currently examining other businesses who wish to operate in the regulatory sandbox.
Meanwhile, Dukhan Bank’s chief operations and digital officer, Narayanan Srinivasan, is reported in the same story, stating that his bank is considering creating a digital bank in Qatar. Srinivasan, on the other hand, warns that his bank will only launch the digital bank if it has a deeper understanding of the economics.
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“We don’t want to hasten this process. We’ll have to look into the economics of it. Unfortunately, there aren’t enough examples of success or failure for us to immediately assess whether or not this is something we can achieve. We need to figure out how we’re going to get this to market.”