Digital Pound: Everything You Need to Know

Egypt intends to issue the digital pound, a central bank digital currency (CBDC), within the framework of the digital transformation targeted by Egypt’s Vision 2023 to enhance the competitiveness of the national currency.

The Cabinet's Decision Support Center revealed, in a report that Egypt is developing the CBDC project, also known as the digital pound, with plans to launch it by 2030, to enhance the competitiveness of the national currency.

According to the Information Center’s statement, the electronic currency is a strategic step by the Central Bank of Egypt (CBE) to enhance the competitiveness of the pound and improve the efficiency and effectiveness of monetary policy.

The digital pound will be the electronic counterpart to the traditional paper pound, and will be dealt with through electronic payment systems, explaining that the step comes as a commitment from the government to adopt digital transformation and reduce reliance on paper currency transactions.

Meanwhile, Representative Akmal Nagaty, a member of the Senate Said that central bank electronic currencies are digital copies of the money issued by central banks and regulated by them, as they provide a higher degree of security, and are not volatile, unlike cryptocurrencies.

Nagaty added, in television statements, that digital currencies make local payment systems more solid and reduce transaction costs, as they are a tool for financial inclusion and transparency, and for confronting the parallel market for foreign currency.

He stressed that the issuance of the digital pound will not replace the paper pound, explaining: “The paper pound will still exist, but there will be another currency called the digital pound.”

Banking expert Mohamed Abdel-Al confirmed during a call-in on Sada El Balad channel, that the government wants to replace the paper currency with the digital pound at the central bank.

The banking expert said that the electronic pound is expected to be introduced by 2030, noting that it will be used in all commercial transactions, as it is no less valuable than the paper pound, in addition to the possibility of using it to purchase bank certificates.

He stressed that the electronic pound is completely different from Bitcoin and cryptocurrencies, and that the central bank will be the supervisor of issuing the new currency, and an electronic account must be opened in a bank to be able to use it.

He concluded that Egypt is working to establish the first digital bank during 2024.