Bitcoin and its sisters are challenging the global monetary systems, driven by the dreams of adventurers
Bitcoin is subject to complex math operations
Central banks declare war and launch alternative official digital currencies
The digital pound is under study ... and the monetary system is stable and well-established, 3% of the volume of Bitcoin transactions internationally
The Egyptian Central Bank prohibits hypothetical transactions, and the risks are cheating
"Virtual currencies" or "cryptocurrencies", as well as "digital money" are terms that have become frequent in news bulletins, websites and social media. The calls vary between warning against dealing with them by official authorities and specialists, promoting them and encouraging dealing with them as fake, And between promoting it and encouraging its circulation under the temptation of rising profits, and on the other hand central banks are ringing the alarm bell, in a scene that can be described as a "currency struggle". The economic page monitors this conflict between traditional and virtual currencies in an attempt to describe the new reality of the global and local monetary system that It is exposed to unprecedented challenges.
A turning point in the position of central banks
Since the emergence of digital currencies, central banks have not paid much attention to it as a bubble that will soon end, but with the passage of time and the increase in the demand for dealing with it and attracting new segments of investors, as well as with the start of establishing funds to invest in them, the situation began to change and central banks around the world sensed the danger, as it increased. Among its importance is the announcement by Facebook last year of its intention to launch its own virtual currency under the name "Libra" supported by real assets, which raised many concerns, especially since Facebook represents one of the most widespread means of communication.
While most central banks were underestimating their matter, there was almost unanimity on the need to move quickly to confront them and tighten control over the process of issuing the currency, which is a fundamental task for central banks, and these banks have already begun to study the possibilities of issuing official, not virtual, digital currencies that enjoy the state’s guarantee and are subject to its monetary policy. , Which constitutes a historic shift for digital payment systems and cashless transactions. A recent survey by the G20's Bank for International Settlements revealed that 86% of the world's central banks are already looking to counter virtual currencies by issuing official digital currencies.
China and France are at the forefront of countries that have already started experimenting with official digital currencies, and the European Central Bank announced that it is on its way to issue a "digital euro" in an experimental manner by the middle of the year.
At the level of Arab countries, the Arab Monetary Fund report entitled "The Risks of Cryptocurrencies" confirmed that both the monetary authorities in the Kingdom of Saudi Arabia and the United Arab Emirates are working to launch a "transient" digital currency project as a settlement unit for the operations of commercial banks in both countries, as many countries legislate. The other Arab region, in the forefront of which is Egypt, to study the possibility of issuing digital currencies officially and securely.
See the experts
Hany Abul-Fotouh, a financial expert, says that the virtual currency is encrypted in all aspects of dealing with it, and it is not an official currency that has legal discretionary power, and dealing with it is fraught with a high degree of risks, the most important of which is loss or theft through a security breach, user error, or technological failure in a wallet The digital currency, when one of these events occurs, the currency cannot be recovered again, and it may also be exposed to fraud or unauthorized use. Spent it, then transactions cannot be reversed in most currencies, even if they are the result of fraud or unauthorized use.
The error in processing transactions also forms in the event of incorrectly executing payments, such as payment to another beneficiary, transferring an incorrect amount or not completing the transaction in a timely manner due to an error in the currency wallet platform or other technical reasons, as in most virtual currency systems it does not reflect The wrong transaction, and the customer has no right of recourse to the other parties.
Abul-Fotouh says that there are errors related to the dealing platforms, as there is no insurance mechanism to compensate the owners of the portfolios in the event of the failure of the electronic platform that carries out the operations of the wallet, or in the event of malfunctions with which the wallet cannot be accessed, in addition to the usability of money laundering, terrorist financing and criminal activities. Connected to the Internet as it does not reflect the true identity of the dealers.
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