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

In a June 2 press release, QCB stated that the first phase of the CBDC project has begun and will continue until October. This initiative aims to modernize and enhance Qatar’s financial sector, aligning with global digital currency advancements.

First phase

Following a comprehensive study, the bank will now test and develop selected CBDC applications for settling large payments with local and international banks in a cutting-edge trial environment.

The project's primary focus is to increase domestic banks' access to capital markets, improve settlement processes, and enhance the efficiency of securities transactions. The initial experimental phase will last until October.

The CBDC project will use artificial intelligence (AI), distributed ledger technology (DLT), and other emerging technologies to boost liquidity by expanding participation in financial markets while ensuring robust security.

The central bank emphasized that maintaining information security throughout the project’s implementation is a top priority.

Digital transformation

The CBDC project supports Qatar’s Third Financial Sector Strategy, the Fintech Strategy, and Qatar National Vision 2030. It represents a strategic step toward building a digital economy and reflects QCB’s commitment to digital transformation in the financial sector.

According to the press release, “Qatar Central Bank is keen to keep pace with the digital transformations witnessed by the financial and banking sector both regionally and globally.”

QCB highlighted its ongoing efforts to regulate and develop the financial sector, emphasizing the project’s potential to enhance liquidity by expanding participation in financial market facilities.

The central bank reaffirmed its commitment to fostering a conducive environment for financial sector growth and promoting technological innovations.

The results of this experimental phase will help identify various use cases for the CBDC, enhancing the efficiency of current systems and enabling instant settlement capabilities.