Can anyone make digital coins? I don't know. What's its circulation mechanism? And who's her guarantor? I don't know.
That's how a pedestrian says on a street in Cairo, echoing questions that many might think of. But what if governments make these coins? The verse may turn.
In general, most countries in the world deal with popular digital currencies, such as Bitcoin and Ethereum.
Only El Salvador recognized bitcoin as an official currency, and the United States and Canada considered it legal. The rest of the countries either imposed restrictions on its purchase and sale, such as Vietnam and Georgia, operated on laws to control it, such as Britain and the European Union, or prevented those currencies from being dealt with decisively, such as China and Bangladesh.
Most of the Arab States belong to the latter category, including Algeria, Iraq, Qatar, Oman, Morocco, and Tunisia. Egypt has not only prohibited digital currencies but has also banned them.
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Why all this prohibition?
Crypto-digital currencies are volatile assets, their prices vary rapidly and are affected by several external factors, making their investment risky. Someone made more than three times more than he bought, and someone lost everything he invested. However, this volatility also occurs when investing in the shares of some companies on international and domestic exchanges, without officially preventing or criminalizing them.
Some may consider it difficult to compare company shares with digital cryptocurrencies, as there is a clear use and agreed value of those shares. The digital currency investor argues that the same can be said of coded digital currencies.
Ethereum, for example, provided a solution to the problem of the original digital art questionnaire rather than NFT. Others believe that digital currencies keep them away from the risk of traditional money losing value as a result of inflation.
Perhaps the main reason for this prevention is that these cryptocurrency digital currencies belong to a decentralized system that is beyond the control of governments, central banks, and large money companies.
The system is called the decentralized economy or Defi. It's an enhanced system with hundreds of digital exchange applications, thousands of digital currencies, interest rates, and lending.
Colin Stone, an economist in his conversation with BBC Arab, says it makes sense for countries to fight digital currencies, "Central banks, and the formal economy control supply, demand, price, and interest rates. Then digital coins come to show that a system like this can be built without a controller. " But there can be an integrated financial system without a control mechanism?
