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This paper proposes two boundedarithmetic operations, which are easily realized with current signals.Based on these two operations, a bounded algebra system suitable fordescribing current-mode digital circuits is developed and itsrelationship with the Boolean algebra, which is suitable for representingvoltage-mode digital circuits, is investigated. Design procedure forcurrent-mode circuits using the proposed algebra system is demonstratedon a number of common circuit elements which are used to realizearithmetic operations, such as adders and multipliers.