Qatar is exploring the possibilities of launching its first Central Bank Digital Currency (CBDC). If this happens, it will become the first time an Arab nation is launching a CBDC. Although, there have been collaborations between the central banks in Saudi Arabia and UAE on blockchain projects in the financial sector.
Project Aber is the result of one of the projects where six commercial banks, three from each country, came together to focus on blockchain-based currencies.
During the just-concluded Bloomberg Powered Qatar Economic Summit, the Governor of the Qatar Central Bank, H E Sheikh Bandar bin Mohammed bin Saoud Al Thani, explained how the bank is deciding on the best platform for issuing its CBDC. For now, the project is at its early stage while they are “evaluating the pros and cons of issuing CBDC,” said the Governor.
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Qatar, World Cup, and the Crypto Financial Market
Qatar is known to be the host of the forthcoming FIFA World Cup in December this year, and the importance of having a good financial policy is key to a stable economy for them. Speaking on this, the Governor said that the country has been investing in infrastructure since 2012 in preparation for the global tournament.
The tournament will boast more economic activities in the region and so controlling inflation becomes a necessity says the Governor.
On the integration of crypto into its economy, he reiterated that it was a good development for the nation bringing in cheaper and faster financial services but there is a caveat on the authenticity of each asset that will be permitted in Qatar.
He also affirmed that the country is ready to adjust amid any global financial crises with its diverse financial portfolios around the world giving them an edge.
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