Recently Qatar announced the launch of its crypto, or CBDC, backed by the central bank. According to reports, the country is in the token creation phase; it is expected to be launched in the coming months.
CBDCs is a scheme that allows the leading central banks in the world, such as the American, Russian or Arab banks, to get involved with the technology, but under their own rules. They are currencies with a 1:1 parity equal to the national currency, which in this case would be the Qatari Riyal.
Qatar advances in developing its CBDC
Recently the QCB mayor of the central bank in Qatar announced in a national economic forum that his team is developing its own CBDC. Al Thani clarifies that the project is in the creation phase, but its progress has been fast.
The mayor indicates that the crypto market is an innovation from a technological field that could even be the door to a new financial scheme that is faster and more accessible to all stakeholders. However, cryptos that national regulators do not target could lose their credibility. In this way, Al Thani would clarify that virtual commerce needs support from the QCB, which is why he launched the regulated cryptocurrency.
The country will be working on the CBDC from the first quarter of 2022. By then, a fintech agency would indicate that the central bank would be investigating cryptos and all the technology that encompasses them.
Interest in crypto is rising globally
A little over a decade after the creation of the first decentralized currency, whose creator is still an unknown figure, cryptocurrencies are becoming increasingly attractive to national banks. According to reports, at least 100 world territories are interested in crypto technology and will create their regulated currencies or CBDC.
Qatar would enter the list of the last countries that propose to launch a CBDC, although it also has strong competitors seeking to profit from Blockchain technology. Dubai is a good opponent for the country, which proposes to launch its CBDC from 2023 to 2026.
These developments in the crypto market by Qatar and the UAE allow decentralized trading to look hopeful. This is because many more people will be motivated to use cryptos, whether regulated or decentralized. This adoption wave will allow virtual trading to rise in valuation, which will also help primary tokens break out of the downtrend.
We have to wait for the Qatar central bank to talk about the CBDC’s progress and officially announce its launch. The sovereign state could promote other types of financial projects through this technology.
