Al Jazeera Net correspondents
Doha- The digital riyal is on its way to emerge, a new step announced by the State of Qatar. Experts believe that it will play a major role in raising liquidity levels, in addition to the supervisory role at the level of taxes and inventorying and tracking existing funds, stressing that it is a proactive step to keep pace with the rapid global developments in this field.
Last Sunday, the Qatar Central Bank announced the launch of the digital currency project, after completing the development of the project’s infrastructure, pointing out that it will now experiment and develop selected applications for the central bank’s digital currency, to settle high-value payments with a group of local and international banks in an experimental environment. Designed according to the latest advanced technologies.
The project will focus on applications of the digital currency of the Qatar Central Bank, to increase access to the capital markets of banks operating in the country, enhance local settlement, in addition to improving the efficiency of securities transactions.
This project, which will enter its first experimental phase extending to October 2024, aims to achieve a set of basic objectives, the most important of which is benefiting from artificial intelligence technologies, decentralized ledger technology and emerging technologies, and creating strong foundations to enhance liquidity by expanding participation in financial market facilities. Taking into account the aspects related to information security during project implementation.
Qatar Central Bank launches a digital currency project #Qatar_Central_Bank pic.twitter.com/ti4cLZFBZo
– Qatar Central Bank (@QCBQATAR) June 2, 2024
Supported and monitored
Financial analyst Ahmed Akl confirmed that the digital national currency that will be issued through the Qatar Central Bank will be supported, regulated and monitored, and will take the status of the official physical paper currency, pointing out that a large portion of transactions have become through digital banking, whether credit cards and other means and digital currency. It will make this easier.
Akl said in an interview with Al Jazeera Net that launching the digital currency is a positive step that is in line with public trends in the world, which is to transform many operations, especially financial ones, into digital operations and thus benefit from financial and information technology and develop it greatly.
He added, “Here we must differentiate: Being a digital currency does not mean that it is a virtual currency that does not exist on the level of circulation, such as Bitcoin, for example. Rather, this is similar to the digital dollar, riyal, or digital dinar, which is a currency issued by a central bank, has value, has legislation, and has systems.” And a central monitor.
He explained, “The difference between digital and regular currency is that digital currency is intangible, and not paper or metal as we are accustomed to,” adding that the shift toward digital currencies is in line with other international experiences.
Akl enumerated the benefits of digital currency in:
The digital currency project…a proactive step that keeps pace with global developments in this field#Qatar_TV | #Business_session pic.twitter.com/vb4O06r9tp
– Qatar TV (@QatarTelevision) June 3, 2024
- The entire monetary mass will be active, with nothing damaged or lost, like paper currency.
- There are people who keep money in cash in their homes, and this cash mass remains stagnant and untapped, while digital currencies will not be hoarded in homes and safes, but rather will be used and generate income.
- Digital currencies will enhance the issue of oversight and transparency.
- The process of transferring and transferring capital from one person to another becomes easier, as does trade between people, institutions, or even countries.
- The cost of printing digital currency is zero.
- This digital currency does not require transportation and storage.
Akl considered that digital currencies represent a step towards introducing new alternative currencies to foreign trade, noting that these currencies need some time to be fully relied upon.
The State of Qatar has an innovative digital infrastructure. Dr.. Buthaina Al Ansari, human resources development and strategic planning expert, confirms that the digital currency project invests in artificial intelligence technologies, which reflects Qatar’s leading position in innovation and digital transformation.#Qatar_TV | #Business_session pic.twitter.com/QcLL31mKQQ
– Qatar TV (@QatarTelevision) June 3, 2024
Waiting for evaluation
For his part, economic analyst Abdul Rahim Al-Hoor believes that the launch of the Qatar Central Bank of a new digital currency comes more than a decade after the launch of digital currencies globally, and this gives scope for monitoring and investigating the mechanisms of their work and caveats to avoid them, as well as the many positives and advantages in digital currencies. To enhance and work on it.
In an interview with Al Jazeera Net, Al-Hoor considered that digital currencies need a high-quality digital technological structure, impenetrable cyber protection, the ability to integrate and interact in global financial markets through relevant financial institutions, and ensure the settlement of payments in this currency.
Al-Hoor explained the new project considering that digital currencies:
- One way to settle payments may be denominated in a real currency such as dollars, euros, or even a basket of other currencies. This is a digital payments model based on the underlying financial system.
- Or the digital currency must be completely independent, which is the one issued via Blockchain technology, which requires an independent digital structure.
Al-Hoor considered that the experimental phase specified by the Qatar Central Bank is very important as it will enable monitoring of the finest details in the trading movement, payment mechanisms and control of payments, and then evaluating the experiment by the end of the current year and building on that evaluation.
The Qatar Central Bank launched the digital currency project, announcing the completion of the project’s infrastructure development, and describing it as a proactive step to keep pace with the rapid global developments in this field.@QCBQATAR#Marsal_Qatar | #Qatar pic.twitter.com/n5dWWXBS0O
– Marsal Qatar (@Marsalqatar) June 2, 2024
Experimental phase
Regarding the nature of the experimental phase of the digital currency in Qatar, economist Dr. Muhammad Al-Kubaisi said that the digital currency announced by the Qatar Central Bank will ensure instant settlement between banks.
Al-Kubaisi said in an interview with Al-Jazeera Net that the use of digital currency in the first stage will be between banks, and he said, “This matter is considered a first stage for banks, and it has benefits including keeping up with global changes, experimenting with the system, entering new markets and helping people understand the mechanisms of work in this field.” .
