The central bank of Egypt is studying the issuance of a digital currency, its sub-governor Ayman Hussein said on Sunday at the Abu Dhabi Conference. The central bank carries out viability studies in cooperation with a number of global financial institutions, Hussein said, without disclosing names or whether the expected currency would be traded only between banks or between banks and clients.
Digital currency has several advantages, including a reduction in banknote issuance costs and cash use, added Hussein. A digital currency encourages more use of electronic payments and supports the approach of the Egyptian government to become a cashless society. This move is a step toward a cashless society.
Blockchain technology is the basis of digital currencies. Blockchain technology, the backbone of digital currency, is capable of disrupting financial services by reducing the cost and complexity of financial transactions and increasing transparency.
Egypt has customarily taken an extremely risk- averse approach towards decentralized cryptocurrencies such as Bitcoin( BTC), reinforcing its public rhetoric since the launch of the country’s first crypto- exchange in August 2017.
At that time, the Egyptian Independent reported that there was no “legislation or law” in force to allow such activities to take place. The Bitcoin Egypt exchange could not be found online today at the time of writing this article.
Earlier in January, the country’s top cleric added to the anti-crypto stance, announcing Bitcoin trading is disallowed in Islam, while a domestic daily Egypt Today told an expert that Bitcoin is “directly used to finance terrorists.”
The Turkish Government also cautioned against the inappropriateness of Bitcoin trading and Islam, while a April report from a Fintech startup in Indonesia concluded that the coin is “generally permissible” under Sharia law.