With financial transactions being driven by digital ecosystems and the evolution of both cyberspace and the banking industry, digital currency will be the solution as a payment gateway, a senior Doha Bank official has said.
Speaking to Gulf Times on the sidelines of the ‘Al Dana Green Run’ yesterday, Doha Bank CEO Dr R Seetharaman said: “The payment settlements cannot be conventional. It has to go through digital currency, and I am not talking about bitcoin or cryptocurrency. Cryptocurrencies can play a role but they have to be regulated. As of today, it is uncharted; no central bank has formally endorsed it.”
Citing the growth of the Internet of Things (IoT) and the changing dynamics of digital ecosystems, Seetharaman said IoT “is going to transform multifold.” He said from around 6bn to 7bn gadgets today, these will grow to 25bn in the next five years, and 100bn in the next eight years.
“The payment settlement systems have to be equipped with artificial intelligence, block chains, or other similar innovations. Everything will be connected and digitised. Payment settlement has to be driven by fast, accurate, measurable, and controllable barometers that is why the regulation stage needs to come in; it cannot be uncharted.
“So we have to look at digital currency as an evolution and regulators and the public and the government should get set for redefining the opportunity and mapping the risk in cyberspace,” Seetharaman pointed out.
On cybersecurity, Seetharaman said Qatar “is headed towards the right direction.” “Cybersecurity has been a major thrust by the Qatari government. On digital currency, we need to come to terms in creating solutions to it; with financial technology evolving, we need to look at digital currency as a possible option – how it evolves, how it is mapped into policies, procedures, and processes within the settlement and payment systems and clearing systems,” he said.
Seetharaman also reiterated that the ongoing economic blockade imposed on Qatar six months ago did not impact the country’s banking industry. Citing the first 10 months of 2017, Seetharaman said deposit expansion is around 9.3%, while overall asset expansion is around 6%.
“Qatar’s financial stability has been well-founded; it is being stable and functional and we don’t see a major instability in any form. 
It is financial stability that is driving change and banks and payment systems are well-equipped, and you have steady revenues in terms of oil and gas, petrochemical investment revenues, which are fundamental to the economy. Overall financial stability is there,” said Seetharaman, adding that the Qatar Central Bank “has taken enough measures to regulate, manage, and control the supply of foreign currencies,” particularly the US dollar.