Experts: The “digital dinar” will facilitate the organization of economic transactions

In their interview with Al-Hiwar, experts in economic affairs confirmed that Algeria is moving towards the use of the digital dinar, which will facilitate, according to them, the organization of economic transactions. They called for the need to involve economic experts in this process, which they described as an important and positive step on the part of the concerned authorities.

For reference, the Prime Minister, Ayman Ben Abdelrahman, confirmed at the end of the year 2022 the Bank of Algeria’s endeavor to adopt a national digital currency under the name “Algerian Digital Dinar” within the framework of digitizing payments.

In a speech he delivered during the inauguration of the symposium on future challenges for central banks organized by the Bank of Algeria on the occasion of the 60th anniversary of its founding, Ben Abderrahmane explained that “among the most important workshops open to the Bank of Algeria, it is worth mentioning the digitization of payments workshop, and the endeavor to adopt the digital form of the cash currency that It will be developed, issued, managed and monitored under the name of the Algerian Digital Dinar.

And that the “Algerian digital dinar” will eventually support the physical form of the monetary currency.

The electronic dinar keeps the monetary mass in the lap of the banks

In this regard, economist Dr. Abd al-Rahman Aya said in his interview with Al-Hiwar that the digital dinar is in its electronic form, that is, instead of the government issuing digital money, and this form of currency cannot be circulated through Hands, as is the case for coins and paper, but the method of circulation is through electronic payment methods, which are digital payment cards, and via mobile phone and other electronic means, stressing that this will facilitate raising the volume of the monetary mass and thus will increase, as he said, the volume of financing and wages can be increased And through it, it is also possible to continue paying without there being inflation levels, and that this monetary block cannot go outside the banking circle, but rather it will remain within the latter to meet the economy, meet the needs and work to raise subsidies for basic materials while controlling inflation levels.

Tigressi: The digital dinar is the perfect financial solution

On a similar level, the economist, Dr. Houari Tigresi, confirmed in his interview with Al-Hiwar that the trend towards the digital dinar is important, given its advantages and good characteristics for the national economy, as it is not like physical currencies, as it can provide economic transactions or immediate financial transactions, and transfer Ownership is without borders, and it is considered one of the virtual or encrypted currencies, which have great capabilities in terms of saving data and global technologies that are difficult to preserve information, and this currency can also be used according to it in the purchase of material goods and services, and it can be limited to certain communities And we will see through the Monetary and Loan Law that will initiate the use of the digital dinar.

There is a major shift in monetary policy

When we talk about a digital system, especially what is related to the digital currency or the digital dinar for Algeria, Dr. Tigersi said that this means that there is a major shift in monetary policy, and he will work to attract the monetary mass that circulates within the parallel market and is estimated at large amounts, and the latter is heavy or slow. Very compared to the money in official banks, as well as the active digital currency, and according to the quantitative theory of money, it says that the value of money lies in the speed of its circulation, and when we have the speed in money circulation, the raw internal product can be very large, because the speed of money movement gives more value and adds The same speaker, and in the language of economics, the rapid movement of money falls within “b.ib”

The electronic dinar will add dynamism to the economy

Dr. Tigersi said that the digital dinar will give dynamism to the national economy because almost all of Algeria’s funds are frozen, and when we look at the digital system, it is capable of giving the most solutions due to the speed of its use, especially since all currencies around the world have become digital, as there are five countries in Africa alone. It carried out this process and gave good results, especially since the monetary and exchange law, which is very important in the process of legalizing the process, and it is necessary to focus on all points, and also the absence of a legal vacuum regarding this aspect, indicating that before talking about this law, the system must be reformed Economic, especially in the financial aspect, and even at the level of problems that exist with regard to Islamic banking, and also with regard to exchange offices, and therefore all the problems that were in the previous stage, must be settled, and before that, Dr. Flows at the level, and on all regions of the country, especially populated areas, due to the speed of the procedure, because it is possible to complete commercial operations through the digital dinar, and the introduction of the digital process was considered a good idea by Minister A. For the first, he called for the need to consult specialists in the financial and economic field in general, while ensuring complete protection to prevent electronic penetration.

$1.4 billion worth of digital investments worldwide

In his historical review of digital currencies, economist Dr. Houari Tigresi revealed that 24 countries invested in digital currencies in 2016, in the distribution of budget technology, with a value of approximately $ 1.4 billion in investments, and 90 central banks participate to discuss the design law equation, including the implications for the currency. Centralization from the central bank, including China, Canada, Denmark, Equator, the Netherlands, Russia, South Korea, Sweden, Switzerland, the United Kingdom, Ukraine, meaning many countries, as he said, deal with this digital currency, or the so-called “blockchain”, what He stresses that Algeria must turn to this technology, which guarantees it dynamism in its economy.

Nasira Syed Ali