Algeria CBDC Tracker

Algeria is currently in the research phase, according to the Algerie Focus. Prime Minister Aimene Benabderrahmane said on December 26, 2022 that the Bank of Algeria intended to adopt a CBDC (referred to as the digital dinar).

Algeria earned a 32 out of 100 in Freedom House’s 2023 Freedom in the World report. As Freedom House noted in the report, corruption, media restrictions, and discrimination are significant problems for the people of Algeria. The issuance or adoption of a CBDC in Algeria could worsen these issues.

“Inadequate anticorruption laws, a lack of official transparency, low levels of judicial independence, and bloated bureaucracies contribute to widespread corruption at all levels of government,” according to Freedom House. Complicating matters, Freedom House also reported that “There is considerable opacity surrounding official decision-making procedures, the publication of official acts is rarely timely, and rules on asset disclosure by government officials are weak and poorly enforced.” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

“Authorities use … legal mechanisms to restrict media activity,” according to Freedom House. Both the French-language newspaper Liberté and Radio M had been effectively shut down by the government. In fact, Freedom House reported that “Journalists and bloggers are frequently subjected to harassment, including brief detentions and fines for offenses such as defamation and ‘undermining national unity.’” The U.S. State Department also reported that “citizens widely believed the government conducted frequent electronic surveillance of a range of citizens, including political opponents, journalists, human rights groups, and suspected terrorists.” Unfortunately, a CBDC could be used as another tool in this effort. Across the world, governments have often turned to freezing and seizing the money of activists, political rivals, and protestors to undermine the opposition. A CBDC would make such initiatives easier by allowing governments to take direct control of each citizen’s finances.

Freedom House also reported that “Members of religious minorities, including Christians and non-Sunni Muslims, suffer from state persecution and interference.” Unfortunately, CBDCs are particularly concerning with this issue because they could be used to identify and surveil members of discriminated communities.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.