Experts explain the feasibility of central banks issuing digital currencies

[yota691]

Experts explain the feasibility of central banks issuing digital currencies
l 22 hours ago
Mohamed Farag - Cairo - Sky News Arabia

Digital currencies began to withdraw a large part of their balances

Clearly, the trend of many central banks around the world has emerged towards issuing digital currencies, which would revolutionize monetary policy, based on several basic motives; Chief among them is allowing greater financial inclusion, in addition to preventing fraud and crime, as well as enabling instant international transactions.

 

Arab central banks are not far from this trend, according to what was announced by the Arab Monetary Fund, as it stated that 76 percent of these banks are studying opportunities to issue digital currencies .

The fund expects that within the next three years, two Arab banks will be able to issue their own digital currencies.

The International Monetary Fund, in a report last October, touched on encouraging central banks to launch their own digital currencies, in parallel with developing and improving payment technologies and facilitating cross-border payments and transfers, to be cheaper, faster, more comprehensive and transparent.

So how can central banks take advantage of this? What are the main challenges?

 

keep up with the situation

The head of the Egyptian Forum for Economic Studies, Rashad Abdo, said in statements to "Sky News Arabia" that the central banks found that digital currencies began to withdraw a large part of their balances, especially in light of the high profit rate, which parallels at the same time with a high risk rate. , makes a “simple event or development” a strong boost to it or causes a significant decline, and then the idea of banks developing their own digital currencies has begun to be raised on a larger scale.

He stresses that this allows central banks to keep customers within the banks' portfolio, with the same idea of banks' investment funds.

At the same time, the economist points out that the issuance of digital currencies by central banks would put all things "under control", unlike the current cryptocurrencies , which do not have data about them and enjoy a large degree of encryption with regard to transactions, which enhances the risks of their use in money laundering and terrorist financing. and so on.

 

risk

In this context, Professor of Finance and Investment in Cairo, economist, Mustafa Badra, believes that digital currencies have higher risks than money markets and any other risks, and other than those risks, they are considered “an unsafe investment for many investors, especially in emerging markets.” Those currencies of a group of countries through their central banks is a matter through which those currencies can be controlled and regulated.

He explains, in exclusive statements to "Sky News Arabia", that a group of countries within one regional scope can also issue one digital currency among themselves, subject to the supervision of central banks; In order to facilitate trade exchange between those countries.

Badra describes the current digital currencies as “a problem for the global economy,” citing the losses that investors suffered earlier after the founder of a currency company fled with two billion dollars.

[pontiyak]

I think Iraq needs to deal with the current dinar before they start thinking about dipping their toes into the digital environment.

 

The best things in life RV.

 

yak