Qatar Investment Authority Unlikely to Make $500 Billion Bitcoin Purchase, Says Financial Expert
Summary:
Speculation about a potential $500 billion Bitcoin purchase by the Qatar Investment Authority (QIA) is likely unfounded, states local financial executive Shadi Qishta. He explains that such an investment in crypto is unlikely given QIA's diverse investment strategy. QIA CEO Mansoor bin Ebrahim Al-Mahmoud has also confirmed an interest in exploring blockchain technology but not in the currency itself. Further, Qishta notes that adoption of cryptocurrencies in Qatar is relatively low due to regulatory oversight, cultural norms, and a preference for traditional banking.
Claims of a huge Bitcoin (BTC) acquisition by the Qatar Investment Authority (QIA) seem doubtful, as stated by a local financial expert to Cointelegraph. Bitcoin advocates on X (previously known as Twitter) have been suggesting over the past few weeks that Qatar's state-run wealth fund might soon incorporate $500 billion in BTC into its portfolio. However, Shadi Qishta, a financial executive, believes the chances of such a substantial investment in the digital currency are minimal, as it does not align with QIA’s investment approach. He said, "Given that QIA diversifies its investments across an array of asset types, sectors and geographical locations to both minimize risk and seize opportunities in various markets and industries, I find it highly unlikely that such a move will take place anytime soon." As a state-run investment fund supported by the government, any changes to QIA’s investment strategy must obtain approval from the Board and the Supreme Council for Economic Affairs and Investment (SCEAI). This indicates that changes to the portfolio allocation would need to be sanctioned by both entities. Previous comments made by QIA’s CEO, Mansoor bin Ebrahim Al-Mahmoud, also conflict with the speculation. During the 2022 Economic Forum in Qatar, he said that QIA is exploring opportunities in blockchain technology, and not in cryptocurrency itself. At the opening ceremony of the Qatar Web Summit in February, there were no mentions of investments in digital assets. Qishta noted, "The subject of investing in cryptocurrency was not explicitly discussed," while adding that Abu Dhabi also revealed plans to invest $100 billion in tech innovation and AI, while excluding digital currencies. Despite being one of the wealthiest nations globally, largely due to its enormous reserves of natural gas and oil, Qatar's attitude towards cryptocurrencies is still restrained. Cautious regulatory oversight and limited public adoption signify the local environment for digital currencies, especially given that crypto trading was outlawed in 2018. With reference to this, Qishta stated, "Despite cryptocurrencies gaining popularity worldwide, uptake in Qatar remains comparatively low amongst the general populace. Regulatory ambiguity, cultural traditions, and a preference for established banking and investment methods have been contributory factors, in stark contrast to the situation in Dubai.
Published At
3/15/2024 8:14:02 PM
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