The Qatar Central Bank (QCB) has announced the completion of infrastructure development for its Central Bank Digital Currency (CBDC) project, marking a significant milestone in its digital financial transformation efforts.

In a press release dated June 2, the QCB revealed that it has initiated the first phase of its CBDC project, scheduled to run until October. This initiative aims to align with global advancements in digital currencies and modernize Qatar’s financial sector.

In this initial phase, following an extensive study, the bank will test and develop specific applications of the CBDC, focusing on facilitating large payments with local and international banks in a cutting-edge trial environment. The project aims to enhance domestic banks' access to capital markets, streamline domestic settlement processes, and improve the efficiency of securities transactions.

Utilizing artificial intelligence (AI), distributed ledger technology (DLT), and other emerging technologies, the CBDC project aims to bolster liquidity by broadening participation in financial market activities while ensuring robust security measures are in place. Information security remains a paramount concern throughout the project's implementation.

Aligned with Qatar’s Third Financial Sector Strategy, Fintech Strategy, and Qatar National Vision 2030, the CBDC project represents a strategic move towards establishing a digital economy and underscores QCB’s commitment to digital transformation in the financial sector.

The QCB emphasized its proactive stance in regulating and developing the financial sector, highlighting the potential of the CBDC project to boost liquidity by expanding participation in financial market infrastructures. The central bank reiterated its dedication to creating an environment conducive to financial sector growth and fostering technological innovation.

The outcomes of this experimental phase will lay the groundwork for identifying various use cases for the CBDC, thereby enhancing the efficiency of current systems and enabling instantaneous settlement capabilities.