Rumors of a massive bitcoin purchase by the Qatar Investment Authority (QIA) are unlikely, a local financial executive told Cointelegraph.
Speculation has been spread by Bitcoin enthusiasts on X (formerly Twitter) in recent weeks, suggesting that Qatar’ s sovereign wealth fund may soon add $500 billion in BTC to its portfolio.
However, the likelihood of such a capital flow to the cryptocurrency is low, according to financial executive Shadi Qishta, as digital assets are not part of QIA‘s strategy.
“I don’t think it will happen anytime soon, because QIA has a diversified investment strategy and is accelerating investments in different asset classes, sectors and geographies to minimize risk and capitalize on opportunities in different markets and industries.”
QIA is a sovereign fund, which means it is a state-owned, government-backed investment fund. QIA ‘s investment strategy must be approved by its board of directors and the Supreme Council for Economic and Investment Affairs (SCEAI), meaning that any change in portfolio allocation would have to go through both institutions.
The speculation also contradicts earlier statements made by QIA CEO Mansoor bin Ebrahim Al-Mahmoud. “Our team in the technology area is exploring opportunities in the blockchain area. This is the area we are interested in, not the currency itself,” he reportedly said at the Qatar Economic Forum 2022.
Moreover, there was no word about cryptocurrencies at the opening of the Qatar Web Summit in February. “Nothing was explicitly mentioned about investments in cryptocurrencies,” he said – qishta noted, adding that Abu Dhabi also announced $100 billion in investments in technological innovation and artificial intelligence, but did not include digital assets.
Qatar is one of the richest countries in the world, largely due to its vast natural gas and oil reserves. The International Monetary Fund (IMF) predicts that the country’s total gross domestic product will grow by nearly 2% per year through 2025.
The country’s approach to cryptocurrencies, however, remains limited. According to Qishta, the local environment for digital assets continues to be characterized by cautious regulatory oversight and limited public adoption, as cryptocurrency trading was banned in 2018.
“Despite the global popularity of cryptocurrencies, adoption in Qatar is relatively low among the general public. Factors contributing to this include regulatory uncertainty, cultural norms and a preference for traditional banking and investment methods that differ from what has occurred in Dubai,” – qishta said.
