Why Qatar’s $500B Bitcoin investment is so unlikely

Rumors of massive Bitcoin (BTC) purchases from the Qatar Investment Authority (QIA) may not be true, a local financial executive told Cointelegraph.

The speculation has been circulated 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, since digital assets are not part of QIA's strategy, according to finance executive Shadi Kishta, the likelihood of such capital going into cryptocurrency is low.

“I don't think that will happen one way or the other anytime soon, as QIA has a diversified investment strategy that makes quick investments across different asset classes, sectors and geographies to reduce risk and capture opportunities in different markets and industries.”

QIA is a sovereign wealth fund, meaning a government-backed sovereign wealth fund. QIA's investment strategy must be approved by the board and the Supreme Council for Economic Affairs and Investment (SCEAI), meaning any revisions to portfolio allocation will go through both bodies.

The speculation contradicts earlier statements by QIA CEO Mansour bin Ibrahim Al Mahmoud. “Our team in the technology space is looking for opportunities in blockchain. We are interested in this space, not the currency itself,” he was quoted as saying at the 2022 Qatar Economic Forum.

Also, there was no mention of cryptocurrencies at the opening ceremony of the Qatar Web Summit in February. “Nothing was clearly mentioned about cryptocurrency investments,” Kishta said, adding that Abu Dhabi also announced $100 billion in technology innovation and artificial investments, excluding digital assets.

Qatar is one of the richest countries in the world due to its vast natural gas and oil reserves. The International Monetary Fund (IMF) expects the country's gross economic output to grow by about 2 percent annually through 2025.

The country's approach to cryptocurrencies, however, is limited. According to Qishta, the local environment of digital assets is still limited by careful regulatory oversight and public adoption, as crypto trading was banned in 2018.

“Despite the global popularity of cryptocurrencies, public adoption in Qatar is relatively low. Factors contributing to this include regulatory uncertainty, cultural norms and a preference for traditional banking and investment options that are different from those in Dubai,” Kishta said.

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