Egypt’s Central Bank Is Looking Into A National Digital Currency

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Ayman Hussein, Central Bank of Egypt’s (CBE) sub-governor said that the bank is conducting “feasibility studies” in regard to a national cryptocurrency. The central bank of Egypt is looking into introducing a digital version of the Egyptian pound to reduce cost.

The news was reported by the local English language media outlet Amwal Al Ghad. During a conference in Abu Dhabi Hussein explained that the currency would only be traded between banks, and banks and their clients. The Egyptian government is looking into transitioning to a cashless society and introducing digital currency fits this plan very well by boosting the use of electronic payments.

Egypt recognised the potential in a blockchain-based digital version of its fiat currency to lower the cost and complexity of financial transactions.

Apart from Egyptian central bank “A number of international institutions” are also involved in the study of potential digitalisation of the Egyptian pound.

This is an interesting turn of events, as Egypt was rather careful in regard to cryptocurrencies. Back in January, one of the country’s top clerics declared Bitcoin trading forbidden in Islam. It was also expressed that Bitcoin is used to fund terrorists.

The cryptocurrency terrorist funding is a common assumption, however, it is one that has already been proven wrong on more than one occasion. An example is an “Intenet Organized Threat Assessment 2018” report by Europol released in September, which concluded that terrorist networks may have experimented with cryptocurrency, but they still prefer to use the conventional banking services.

Fiat seems to still be the king for bad people.

 

Images by Shutterstock.com

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