Speculation surrounding a potential Bitcoin purchase by the Qatar Investment Authority (QIA) is unlikely to come to fruition, according to a local financial executive. Over the past few weeks, Bitcoin enthusiasts on X (formerly Twitter) have been spreading rumors that QIA’s sovereign wealth fund is set to invest $500 billion in BTC. However, financial executive Shadi Qishta believes the chances of this happening are low as digital assets are not part of QIA’s investment strategy. QIA is a state-owned investment fund, and any changes to its portfolio allocation must be approved by its Board and the Supreme Council for Economic Affairs and Investment (SCEAI).
This speculation contradicts previous statements made by QIA’s CEO, Mansoor bin Ebrahim Al-Mahmoud. During Qatar’s Economic Forum in 2022, Al-Mahmoud reportedly stated that QIA’s interest lies in exploring opportunities in blockchain technology, rather than the currency itself. Furthermore, there was no mention of cryptocurrencies during the opening ceremony of the Qatar Web Summit in February.
Qatar, known for its vast natural gas and oil reserves, is one of the wealthiest nations in the world. The International Monetary Fund (IMF) predicts that the country’s total economic output will grow by nearly 2% annually until 2025. However, Qatar’s approach to cryptocurrencies remains restricted. Crypto trading was banned in 2018, and the local environment for digital assets is characterized by cautious regulatory oversight and limited public adoption. Qishta attributes the low adoption rate to factors such as regulatory uncertainty, cultural norms, and a preference for traditional banking and investment methods.