Qatar is turning its attention to the online currency arena, with Qatar Central Bank (QCB) pitching in to build the central bank online currency project (CBDC).
The aim of Qatar is to become an online currency hub and be in sync with the rest of the world, marching towards the new technological era.
The CBDC’s task will be to settle big payments with the help of domestic and offshore banks within an experimental space. It will oversee the creation of certain applications and use its experience and know-how.
The project will initiate the initial trial stage in the latter half of the year. It has certain priorities, such as using distributed ledger technology (DLT), AI, and the necessary upcoming technologies. It also aims to create a base for enhancing liquidity via additional involvement in finance markets. Finishing the designed structure is a segment of Qatar’s fintech plans. The central bank is pitching in for regulating and building the finance space.
CBDC is a sort of online currency released by a country’s central bank in the form of a central bank online currency. It is somewhat similar to cryptocurrencies, owing its allegiance to the country’s fiat currency, coming with an affixed value that the central bank has established. CBDCs are a common factor in many countries.
The main aim of CBDCs lies in making provisions for financial safety, transferring options, privacy, and availability, and targeting businesses and individuals involved in financial transactions. Added to that, it may be possible for CBDCs to lessen international transaction costs, including maintenance linked to a complicated financial mechanism. Other money transfer options are brought forth for users’ convenience.