Jordan’s conference discusses status of digital currencies

The 12th Money and Investment Conference got underway on Tuesday in Amman with the participation of Arab and foreign experts and international companies. The conference, titled “Digital coins [bitcoins] and their influence on the economy”, discussed the modern era of digital currencies, such as the “bitcoins”.

The two-day conference will address the future of banknotes in light of the spread of digital money, as well as the advantages of investment in stocks and oil in the Arab region and the impact of currency fluctuations on Arab economies. It will also tackle systems and technology used in currency trading and the laws and regulations that organize it.

Amman Stock Exchange Chairman of the Board of Directors Jawad Anani said in the opening speech that bitcoins first emerged in 2009 and are protected through an e-security system that is structured in a “special language that makes it very difficult to penetrate.”

“There is no monetary authority that supervises digital currencies on the international level, and in case they were accepted globally, the functions of other currencies must be acquired as a means of payment and a tool for storage and settlement, which will raise the price of gold, silver and platinum in the world,” he explained.

Anani also stressed that the electronic revolution witnessed by the global economy will rearrange the roles of many international organizations, such as the International Monetary Fund, the Bank for International Settlements and the World Trade Organization.

“Bitcoins are divided into two kinds: electronic ones that enjoy high levels of protection due to their encryption, and coins whose values are estimated at $42 million globally,” Anani said. International economic expert Amr Abdo said that the digital currency revolution is inseparable from the global economic crisis, which revealed that the world economy does not serve the middle class.

He pointed out that the market value of digital currencies today is around 93 billion dollars on the global level. Fadi Khalaf, secretary general of the Arab Stock Exchange, said that the opportunities are attractive for investment in stocks. He attributed the reason for the Arab investments in global stock markets to the lack of liquidity, which should be addressed through short selling and the construction of hedging tools that reduce risk rates.