Where does Egypt stand on digital currency like Bitcoin? It&rsquo;s not standing still, 2019 saw the beginning of the government and Central Bank of Egypt (CBE) moving forward to adopt cryptocurrency laws without suffering their unpredictability.
The government has been highly cautious to allow freely traded Bitcoin and other cryptocurrency, explaining that unregulated digital currency could be used for terrorist financing and tax avoidance. A concern that was famously echoed by Grand Mufti Shawki Allam, calling Bitcoin an unacceptable interface of exchange, and an unlawful form of trade.
<img src="https://api.fastersmart.online/uploads/embeds/1579527946-c500b4823df018d1656a1ad7b6fe1250.png" alt="" width="620" height="926" />However, with the drafting of the Bank Act last year, the CBE created guidelines and regulations for cryptocurrency by requiring those who sell, advertise, or operate trading platforms to obtain licenses before doing so. The Banking Act allows the CBE full control in determining the rules for private bank account holders to trade digital currencies.&nbsp;
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Rise in the amount of local Egyptian Bitcoin sales&nbsp;
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The CBE is looking into potentially issuing a digital currency version of the Egyptian pound with Sub-Governor Ayman Hussein saying last December that the CBE was working on President Abdel Fatah El-Sisi&rsquo;s directive to transition Egypt into a cashless society. A digital currency would increase efficiency and security in transactions across nations and banks.
Tunisia was the first MENA country to launch a digital currency, the eDinar, to facilitate trade and exchange. Israel and the UAE are also looking into their own digital money in order to link mobile apps for payment anywhere.[article id=4746]Perhaps though the biggest incentive for Egypt is to include the informal sector in the economy. The informal sector in Egypt comprises half the economy, and is untaxed, unbanked, and unregulated. Its formal inclusion with mobile banking and e-payment service has been a major goal of the government since 2015.
Its inclusion would increase Egypt&rsquo;s GDP by more than 40%, and while only 14% of the country has a bank account, 100% have a mobile phone. Thus the best way to increase the financial inclusion of the unbanked population is through their phone, why Fawry and other financial tech companies have been growing at a fast pace with governmental support.
While countries and central banks around the world initially saw cryptocurrency as a competitor to national currency, and potentially destructive, the international mood is beginning to shift their conception towards adopting cryptocurrency. Digital currency makes online transactions easier and cheaper, and corruption-free. Seeing as we are moving into an age where $6.6 trillion moves across borders daily, it&rsquo;s important for the government to be able to quickly track exchanges, and shift policy when needed.&nbsp;&nbsp;

Central Bank of Egypt moves forward with digital currency infrastructure.

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