The rise of Qatar's Digital Currency start this October

The Central Bank of Qatar has announced the completion of its central bank digital currency (CBDC) infrastructure, marking a significant step towards the implementation of digital currency in the country. Official reports highlight that this move aligns with global advancements in the digital finance sector. 

Scheduled for a pilot phase in October 2024, Qatar's CBDC project will involve testing large payment transactions in collaboration with national and international banks with a trial environment. The primary focus of the pilot project will be on institutional adoption, aiming to enhance access to the capital market for domestic banks, improve domestic settlements and increase the efficiency of securities transactions. 

This initiative is part of Qatar's border strategy to integrate emerging technologies like blockchain and artificial intelligence (AI) into its financial systems. The pilot's outcomes will inform the central bank's decision on the main use cases for the CBDC, aimed at strengthening the country's financial system capabilities. 

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

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