The Qatar Central Bank (QCB) has announced the completion of the infrastructure development for its Central Bank Digital Currency (CBDC) project, marking a significant milestone in its efforts to embrace digital financial transformations.
In a June 2 press release, the QCB said it has started the the first phase of its CBDC project, which is expected to last until October.
The central bank added that the initiative aligns with global advancements in digital currency and aims to modernize and enhance the country’s financial sector.
First phase
Following a comprehensive study, the bank will now test and develop selected applications of the CBDC for settling large payments with local and international banks in a state-of-the-art trial environment.
The CBDC project’s primary focus is increasing domestic banks’ access to capital markets, improving domestic settlement processes, and enhancing the efficiency of securities transactions. The project’s initial experimental phase will last until October.
The CBDC project will leverage artificial intelligence (AI), distributed ledger technology (DLT), and other emerging technologies to enhance liquidity by expanding participation in financial market facilities while ensuring robust security.
The central bank said that information security throughout the project’s implementation remains a top priority.
Digital transformation
The CBDC project supports Qatar’s Third Financial Sector Strategy, the Fintech Strategy, and Qatar National Vision 2030. It represents a strategic step toward building a digital economy and reflects QCB’s commitment to digital transformation within the financial sector.
According to the press release:
“Qatar Central Bank is keen to keep pace with the digital transformations witnessed by the financial and banking sector both regionally and globally.”
QCB emphasized its ongoing efforts to regulate and develop the financial sector, highlighting the project’s potential to enhance liquidity by expanding participation in financial market facilities.
The central bank reaffirmed its commitment to fostering a conducive environment for the growth of the financial sector and promoting technological innovations.
The results of this experimental phase will form the foundation for identifying various use cases for the CBDC, contributing to enhancing the efficiency of current systems and enabling instant settlement capabilities.
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