Ongoing Feasibility Studies Around Digital Currency Issuance

By: Yassmine ElSayed

CAIRO, Dec. 21 (SEE) – A recent media report revealed that the central bank of Egypt is conducting studies about introducing a digital version of the Egyptian pound to reduce costs.

‘Amwal Al Ghad’ quoted Ayman Hussein, sub-governor of the Central Bank of Egypt (CBE), during an Abu Dhabi conference just concluded, that the move is one step in the journey to a cashless society.

“In line with various authorities in the vicinity, Egypt believes a blockchain-based digital version of its fiat currency can help keep issuance and transaction costs to a minimum compared to coins and banknotes,” the report added.

Hussein noted that a number of international institutions are involved in the studies. “without disclosing names or specifying whether the anticipated currency would be traded for banks only or between banks and clients,” he added.

Egypt has traditionally taken a highly risk-averse stance to decentralized cryptocurrencies such as Bitcoin (BTC), stepping up its public rhetoric since the country’s first crypto exchange launched in August 2017.

At the time, CBE reacted saying there was no “legislation or law” in force “allowing” such activities to take place. The exchange, Bitcoin Egypt, could not be found online today at press time.

Moreover, the country’s top cleric declared that Bitcoin trading forbidden in Islam, while an advisor subsequently stated that Bitcoin is “used directly to fund terrorists.”