Gulf News The value of some of them doubled more than two thousand times in one day … Al-Sahli: Digital currencies are the future … and traditional money lives its last days!


$ 1.7 trillion is the volume of digital currency investments around the world

Establishing the first currency association in Bahrain to support those interested in rare and digital currencies

The interview was conducted by: Muhammad Al-Sai

Photography: Abdul Amir Al-Salatne

While traditional currency is defined as paper or metal money issued by the government through the central bank, and it is traded within the economic system, meaning that it is tangible, the digital currency is considered a currency only available in an “intangible” electronic form. And it is dealt with through e-wallets. In the sense that there is no physical existence of it. Consequently, it is an legal financial balance registered electronically for the benefit of an individual or an entity.

Digital currencies are considered a real qualitative leap in transactions and currencies around the world, as money is no longer limited to currencies, bills and credit cards only, and it is no longer issued by central banks only, but there is money that no government owns and is completely present on the Internet.

the beginning

The first encrypted electronic currency appeared in 2009 by Satoshi Nakamoto, and was called “Bitcoin”, and is still considered the most famous. And in 2013, the digital currency Ripple emerged as a strong competitor to Bitcoin. Before the Russian programmer Vitalik Buterin created one of the most famous digital currencies in 2015, which is the currency of Ethereum.

Regionally, Bahrain is the first Arab country to license digital currencies. Early in 2019, the Central Bank of Bahrain issued final rules for activities related to digital assets and currencies, which include licensing, governance, capital, environmental control and risk management.

In July of the same year, Rain received a license from the “Crypto Assets Unit (CRA)” from the Central Bank of Bahrain, as the first cryptocurrency exchange in the Middle East to obtain a full license for this activity from a regulatory authority.

Fast and safe

Although the interest in this type of currency may be at its beginnings in the region in general, there are models that turned early on to the importance of this digital development and considered it the future, and boldly fought in it, achieving remarkable successes.

Among these models is Abdullah Al-Sahli, an expert and interested in electronic and technical currencies, who invested early in these currencies, to reap today the fruits of that boldness that distinguished them.

Al-Sahli says: First, we must emphasize that Bahrain is among the first – if not the first – in the Middle East in terms of interest in this aspect. We have the first platform in the Middle East (Rain) that specializes in digital currencies and is dealt with by various countries of the world.

In fact, Abdullah Al-Sahli adds, the digital currency can be considered originally like gold and silver, although there is no tangible existence of the digital currency, rather it is a virtual existence like Google and Facebook, as you do not touch it by hand, but rather benefit from it and have its market value. It is certainly the currency of the next future that cannot be ignored, otherwise we will be behind the ranks of accelerating developments in the near future, as the whole world is heading to such currencies now.

} What distinguishes these currencies from traditional currencies?

{{Firstly, we must point out that there are two types of digital currencies, which are central digital currencies and decentralized currencies.

As for central currencies, they are currencies issued by governments or well-known and specific companies that are more controllable and controllable. An example of this is what the Chinese government is currently working on.

As for decentralized currencies, they are issued by specialized technology companies such as Bitcoin and others. It relies on a complex encryption process (blockchain) and a virtual chain of information that provides maximum protection from tampering and forgery.

In general, digital currencies have solved many problems related to fiat currencies. The digital currency system is characterized by the great speed in the completion of transactions, it only takes a few seconds, for example, to transfer what you want from the money, and the transfer cost is very symbolic compared to the traditional transfer operations. At the same time, these currencies enjoy high degrees of protection and transparency. The operations that take place through it are according to complex software that makes the hacking or swindling almost impossible .. In addition to that the operations are clear to everyone and therefore cannot be tampered with. This makes digital currencies safer, more protected from exposure to money laundering or tax evasion, and more manageable to monitor, know the source and direction, and ensure that these funds are not directed to suspicious or criminal parties. Thus, digital currencies achieve greater control and oversight, especially central currencies. It is more like the benefit system we have, but in a more global and sophisticated way .. Besides, you do not have to carry money with you. You don’t need to have assets like gold or precious metals. These currencies are not linked to another currency, and therefore are not affected by the political and economic conditions of those currencies.

The currency of the future

} But in any case, you are dealing with an unknown party. How do you trust such transactions?

{{{You are dealing with technology and advanced technology. Perhaps at first, operations were marred by a kind of suspicion or mistrust, but during the past years digital currencies have imposed themselves as a large and reliable financial power, but rather as a safe and advanced investment method.

The important thing here is that the digital currency is considered a rare currency for the simple reason that it was issued in a specific quantity and no other was issued, and what is being traded around the world is the same amount that was issued. This doubles its value and makes it rare. The issuance of a single digital currency requires thousands of devices and algorithms around the world. All this makes it safe, reliable and valuable to deal with.

Two thousand double!

} It is natural for each development to have its negative aspects as well .. What are the main risks in dealing with digital currencies?

{{Decentralized currencies, or their exploitation by unreliable parties. But this problem is not limited to this type of currency, but is mainly found in traditional currencies. If these currencies were lost, it would be difficult to return them. But the important question here is how much is the chance of being lost? Dealing through private platforms and wallets provides high security and protection rates that may not be available in traditional currencies.

On the other hand, central digital currencies may provide a greater opportunity to control, track and control and prevent their exploitation by terrorists or their exposure to fraud and money laundering operations. Therefore, this type of currency is more preferred by the governments. This is the global view now, as dealing in digital currencies is no longer limited to individuals or companies, but rather has become an important option for many governments. For example, China began its experiments in this aspect. And it issued amounts of the electronic yuan to a number of provinces and shops to be dealt with commercially before circulating in the future. Other countries are studying this matter, such as Russia and some European countries. In short, it can be confirmed that digital currencies are the currency of the future, and will replace the traditional currency.

} What is the safety ratio in investing in currencies? Meaning, if I had two options between investing in the digital currency or in another field, what would make me the first choice?

{{In the market there is no 100% safe option, so all possibilities are possible. But here we are talking about the currency of the future. Hence, the importance of investing in it cannot be ignored. The simplest example is if you had bought digital currencies four months ago. Your wealth would have quadrupled by now. And if you bought the same amount six months ago, your fortune would have increased tenfold by now. Whoever bought Bitcoin in 2011 with one dollar, its value exceeded 60,000 a while ago. Even if declines in values ​​occur, which is normal in any market, it remains a successful and safe investment process to a large extent. Did you know that some currencies doubled in value more than two thousand times in one day? The process is more like dealing per inch, but with a more sophisticated method based on modern technologies.

} But what are the guarantees that this rise will not be a mere bubble that will burst quickly, as happened in many sectors?

{{There are no guarantees. But the amounts that investors are currently trading in exceed two trillion and 700 billion dollars around the world. There are more than 8000 currencies programmed around the world. Hence, it is a strongly popular currency. Had it not been for confidence in it, this spread would not have been achieved.

} Is it possible to make buying and selling operations through digital currencies?

{{{{{} Although the matter is still in its infancy, there is a global trend to replace traditional digital currencies even in the buying and selling processes. For example, the company “Tesla” deals in this type of currency. And countries like Korea, Turkey, and others are moving to replace traditional with digital. Therefore, I can confirm that traditional currencies live their last days. In less than a decade, traditional currencies will perish against the spread of digital.

} How can a novice in this field invest in digital currencies?

{{{The first step that must be adopted is to study the existing currencies and know the trends of each currency and the future of the issuing companies. We do not deny that there are weak currencies and there are mysterious companies. Hence, strong, successful and reliable currencies must be identified.

The second plan is to open an electronic wallet, whether in person or in approved platforms, through electronic applications. Then the currency can be bought and sold. In fact, it is a very enjoyable process, especially for someone who loves technology and commerce at the same time. And it depends on the preferences of the person himself, there are long-term and short-term investments. There are companies that give special offers such as currencies or additional profits, depending on the amount of currency and the period of time you deposit it. A person can sell what he has at any moment.

Bahrain Currency Association

} Allow me to ask one last question .. You have a direction to inaugurate the Bahrain Currency Association. What is expected of this association?

{{It is the first currency association in Bahrain. The association is expected to see the light within a few weeks. I am one of the founders of it. The association aims to support amateurs and those interested in currencies, whether rare paper currencies or even digital currencies. It also aims to attract young people to this hobby and encourage investment in this aspect.


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