Economist Dr. Abed Fadlia, in his interview with Al-Watan, highlighted the challenges faced by Syrian banking authorities in embracing digital currencies, particularly those from allied nations. He noted that while such transactions are feasible and accessible elsewhere, Syria lags due to a lack of requisite software, infrastructure, and the readiness—both material and immaterial—to adopt these currencies, which surpass the conventional financial exchange methods prevalent in the country.
Moreover, Fadlia emphasized that the “cryptocurrency” or “e-” programs of potential trading partners may still be in early developmental stages and not yet poised for widespread adoption.
He explained that digital currency essentially functions as state-sanctioned bank accounts managed by the Central Bank, akin to the issuance of physical currency. Transactions involve the transfer of numerical values between banks, with physical currency issued upon withdrawal requests. The Central Bank maintains reserves equivalent to a percentage of banks’ capital to facilitate this process.
Fadlia elucidated that cryptocurrencies are cross-border currencies created and managed by entities similar to central banks, facilitating various financial transactions, including payments, obligations, stock trading, and savings. Despite their global reach, there are inherent risks, such as hacking incidents exploiting vulnerabilities in these systems.
Despite the uncertainties surrounding cryptocurrencies and their operational intricacies, the cryptocurrency movement has persisted, albeit with challenges. Fadlia acknowledged the emergence of new, reputable cryptocurrencies, backed by known entities, which are gaining recognition internationally for facilitating trade-related transactions. However, he emphasized that these modern currencies resemble electronic banking currencies more closely than cryptocurrencies like Bitcoin and its counterparts.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
