ALGIERS – The Minister of Knowledge Economy, Start-ups and Micro-enterprises, Yacine El Mahdi Oualid affirmed Monday in Algiers that the bill relating to currency and credit would establish new activities allowing the creation of competitiveness between Algerian start-ups, particularly in terms of modernizing means of payment.
During a hearing session before the Finance and Budget Committee of the National People’s Assembly (APN), within the framework of the debate on the bill relating to currency and credit, chaired by Lakhdar Salmi, President of the commission, in the presence of the Minister for Relations with Parliament, Basma Azouar, Mr. Oualid underlined “the importance” of this text of law for the national economy, including start-ups, especially since it “institutes new activities in the financial field, in particular in terms of modernization of means of payment”.
This piece of legislation, which accompanies the transformations that have occurred in the banking ecosystem, in particular with regard to the authorization of investment banks, digital banks, payment service providers and independent intermediaries, in addition to the opening of offices change, “will allow the creation of a new competitive ecosystem for Algerian startups”, underlined the minister, adding that the market value of payment services and independent intermediaries amounts to more than 700 billion USD worldwide .
This bill will also make it possible to develop means of payment in Algeria and to spread the culture of electronic payment, which would encourage startups and technology companies to contribute to this dynamic, continues Mr. Oualid, who recalls that most startups in Africa, carriers with a market value of more than one (1) billion USD, are active in the field of fintech.
The bill comes “to make up for the shortcomings recorded last year, particularly in terms of means of payment”, specified the Minister, in the sense that “e-payment, being formerly the prerogative of banking establishments, has become current practice among start-ups in large countries”.
Mr. Oualid qualified, moreover, the Algerian digital dinar, whose issue and management are ensured by the Bank of Algeria, in accordance with the terms of the bill, “is a good measure which is in tune with the developments made “, indicating that all countries are moving in this direction being “threatened by cryptocurrency”.
Last Thursday, the Minister of Finance, Brahim Djamel Kassali presented before the Finance and Budget Committee of the APN, the draft law on currency and credit which tends to strengthen the governance and transparency of the banking system, the Bank of Algeria in the lead, by giving the Council of Money and Credit (CMC) broader prerogatives.
This text of law, repealing Ordinance No. 03-11 of August 26, 2003 relating to money and credit, as amended and supplemented, is part of “the reforms initiated by the public authorities and the restructuring of the monetary system and finance in Algeria, in order to adapt to the latest developments and better meet the requirements of the expected economic reform”, explained the minister at the time.