Algeria Embarks on Major Economic Transformation
Algeria has embarked on a major economic transformation with the announcement of the gradual phase-out of cash by 2028, confirmed by the Governor of the Bank of Algeria, Salah Eddine Taleb, in an interview with the National Press Agency, on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington.
Historic Decision
This historic decision is part of an ambitious national strategy to modernize the banking system, strengthen financial transparency, and combat money laundering. The goal is clear: to shift the country towards a digitalized economy, where electronic payments will completely replace cash transactions.
Roadmap for Transformation
To achieve this transformation, the Bank of Algeria has developed a comprehensive roadmap, supported by the new monetary and banking law, recently adopted. This text repeals the 2003 ordinance and establishes a modern regulatory framework, adapted to technological innovations. It provides, in particular, for the creation of a National Payments Committee, responsible for piloting the transition to a 100% dematerialized financial system.
New Players in the Financial Sector
This reform opens the way for new players in the financial sector, such as payment service providers (PSPs), digital banks, Islamic banks, and investment banks. The future Central Bank Digital Currency (CBDC) will be a decisive step, offering a sovereign and secure electronic payment method.
Fight Against Money Laundering and Terrorism Financing
In parallel, Algeria is intensifying its fight against money laundering and terrorism financing, under the supervision of the Financial Action Task Force (FATF). Since October 2024, two specialized committees have been monitoring the implementation of a national action plan to identify risks, strengthen the training of banking actors, and ensure compliance with international standards.
