Central Bank Governor: Qatar is at the “Foundation Stage” of CBDC Exploration
- The Qatar central banker praised the “innovation” of crypto assets.
- Qatar is trying to discover the best technology and platform to issue CBDC.
- Al Thani stated that efforts are being made to make it simpler for visitors visiting Qatar to utilize digital currencies.
Speaking at a conference in Doha, Qatar central bank governor Bandar bin Mohamed bin Saud al-Thani said that the bank is in the “foundation stage” of exploring a central bank digital currency (CBDC). He praised the “innovation” of crypto assets and said that the bank is investigating how best to harness their potential.
Al Thani said that the bank is working with other Gulf state central banks to explore CBDCs, and is also engaged in dialogue with global experts on the matter. He stressed that any decision to launch a CBDC would be taken only after careful consideration and consultation with all relevant stakeholders.
The governor’s comments come as Qatar prepares to host the 2022 FIFA World Cup, which is expected to attract millions of visitors from around the world. With this in mind, Al Thani said that the country is working on initiatives to make it easier for people to use digital currencies when traveling to Qatar.
This comes as no surprise given the benefits that a state-backed digital currency can offer. For one, it can help to reduce dependence on cash, which is becoming increasingly inconvenient and expensive to use. A recent study by the Bank for International Settlements found that nearly 90% of central banks are looking into issuing their digital currencies.
Another benefit of a state-backed digital currency is that it could help stabilize economic activity. This is because central banks would be able to directly control the money supply rather than having to rely on commercial banks. This would give them a greater ability to respond to economic shocks such as recession or inflation.
Finally, a state-backed digital currency could also help to increase financial inclusion. This is because it would provide a way for people who do not have access to traditional banking services to store and use their value. This could have a particularly profound impact in developing countries, where many people do not have access to formal financial institutions.