CBQ completes its central bank digital currency infrastructure - a significant step in implementing digital currency

An important step towards the adoption of digital currency in the nation has been taken with the announcement by the Central Bank of Qatar that its central bank digital currency (CBDC) infrastructure is complete. According to official sources, this step is in line with worldwide developments in the field of digital banking. 

The CBDC project in Qatar is slated to begin a pilot phase in October 2024. It will test large-scale payment transactions in a trial environment in partnership with national and international banks. The pilot project will primarily concentrate on institutional adoption, with the goals of improving domestic settlements, boosting the effectiveness of securities transactions, and improving domestic banks' access to the capital market. 

This programme is a part of Qatar's border strategy to incorporate cutting-edge technology into its financial systems, including as blockchain and artificial intelligence (AI). The central bank's choice of the primary use cases for the CBDC, which aim to improve the nation's financial system capabilities, will be influenced by the pilot's results. 

While the head of the bank's fintech division, Alanood Abdullah Al Muftah, noted that the bank was studying these elements, any decision to issue a CBDC would follow a thorough examination of all relevant factors. The Central Bank of Qatar had previously expressed interest in exploring digital banking and CBDCs in 2022.