The Reality of Using Electronic and Virtual Money and Its Impacts on the Global Economy, A Descriptive Analytical Study of Monetary, Economic, and Financial Implications

Abstract

This research paper aims to examine the theoretical frameworks of electronic money (e-money) and virtual currency, highlighting their significance, mechanisms of operation, and practical adoption across various countries worldwide. By employing a descriptive-analytical approach, this study evaluates the multifaceted monetary, economic, and financial implications arising from the expanding adoption of digital monetary forms. The findings reveal that despite technical, regulatory, and security challenges, electronic and virtual currencies have successfully asserted themselves within the international monetary and financial system as medium of exchange, unit of account, and store of value. Conversely, the analysis indicates that Algeria remains substantially detached from active engagement with electronic and virtual payment systems, constrained by an interplay of technical infrastructure deficiencies, economic-financial hurdles, and regulatory gaps.
Keywords: Electronic Money, Virtual Money, Bitcoin, Economic Effects, Monetary Policy, Financial Stability, Central Banking.