The Qatar CBDC project, an initiative of the country’s central bank, has been the new addition to the increasing number of CBDC projects across the globe.
Qatar Central Bank has announced the launch of a new project to explore a central bank digital currency (CBDC). The Qatar CBDC project has joined multiple other CBDC projects around the globe that are currently exploring the crypto use case. In this initial project phase, the Qatar Central Bank will check the settlements of large payments with banks.
CBDCs, issued and controlled by central banks, hold the potential to revolutionize interaction with money. This blockchain-powered crypto use case can offer compelling benefits that contribute to their increasing popularity and immense potential. Central banks in the European Union, Hong Kong, the UK, and many more regions are exploring it.
Meanwhile, the project’s official announcement stated, “The project will focus on the applications of the CBDC to increase access to capital markets for operating banks in the country, enhance domestic settlement, and improve the efficiency of securities transactions.”
Nevertheless, the first project phase will extend to October 2024. It will test digital ledger technology (DLT), artificial intelligence, and other new technologies to keep up with global developments. The Qatar Central Bank also informed that the project follows the Qatar National Vision 2030, Fintech Strategy, and Third Financial Sector Strategy.
Further, the central bank committed to a complete digital transformation of the country’s financial sector. It termed the CBDC project as an important milestone and a strategic step in that direction.
In Europe, the e-krona CBDC project has gained the limelight in 2024. Besides, the digital euro project has already made major strides in its progress. A US CBDC also figures on the Federal Reserve’s priorities, but the project hasn’t materialized yet.
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