First phase of digital currency in Qatar to extend until October 2024

Doha, Qatar: Assistant Governor for Financial Instruments and Payment Systems at Qatar Central Bank Sheikh Ahmed bin Khalid Al Thani revealed that the...

Doha, Qatar: Assistant Governor for Financial Instruments and Payment Systems at Qatar Central Bank Sheikh Ahmed bin Khalid Al-Thani revealed that the pilot phase of the digital currency project, which will extend until October, will involve Qatar Central Bank and the banks participating in the experiment to settle high-value payments.

Speaking to Qatar News Agency (QNA), Sheikh Ahmed bin Khalid Al-Thani noted that QCB has developed four use cases with local and international banks, by issuing and settling securities using digital currency.

The results will be evaluated and future use cases will be identified after the pilot phase is completed, either by developing retail use cases or continuing to expand use cases for settling high-value payments, he added.

The pilot phase will see the launch of a special platform for participating banks to conduct digital transactions. The digital currency account feeding process will be conducted by transferring Qatari riyals to the platform - one Qatari riyal for one digital currency (1:1). The banks participating in the pilot phase will be able to trade, buy and sell financial assets using the digital currency in an experimental environment.

On the project beneficiaries, Sheikh Ahmed bin Khalid Al-Thani said the concept of the digital currency itself is broad. It is a means of payment used for goods and services, and for Qatar Central Bank, the value of the Qatari riyal is based on fixing the exchange rate against the US dollar. In simple terms, the currency can be used as a means of payment between individuals, and these transactions are called retail payments or low-value transactions. It can also be used between banks and with Qatar Central Bank, and these transactions are called wholesale payments or high-value transactions. Finally, the currency can be used across borders through transfers outside the country. In this case, the local currency will be converted into a foreign currency at the market exchange rate.