Central Bank of Egypt (CBE) announced that it is working on a draft law for crypto-related currency activities .This will mark the first step the Egyptian government takes toward the legalization of the digital currency.
It will oblige financial institutions in the country to obtain licenses in advance for creating, advertising or operating platforms that issue or facilitate trading of crypto-currencies. It was the first service in the region of the Middle East and North Africa that allowed Egyptian citizens to buy bitcoin for the national currency through the use of vouchers.
Legalization Process of Crypto Currency Activities
Many Egyptians prefer money transfers in bitcoin as a convenient and cost-effective instrument. But even then, the country was rather skeptical about the new technology and digital currencies due to a poor understanding of the essence of this technology.
According to the creator of the service, David El Achkar, only 10% of Egyptian citizens had bank cards and accounts. So, he sees the prospect for widespread use of bitcoin and other crypto-currencies in the country.
Noteworthy, crypto-currencies quickly became popular among citizens partially due to the unstable financial situation in the country.
The government employed a strict attitude toward crypto-currencies until the end of 2018, in late winter, it had to look for ways to cut costs.