Egypt plans to issue its official state cryptocurrency

According to yesterday's report by the Egyptian newspaper Al-monitor, an anonymous source in the Central Bank of Egypt said that the bank plans to issue a cryptocurrency similar to that created by Saudi Arabia and the United Arab Emirates.

The excitement around the Facebook Libra project made the main bank of Egypt think about how this digital currency could harm the country's monetary system.

In addition, in order not to lose ground in this sector, given that China also intends to launch its own state cryptocurrency in the near future, Egypt wants to enter the cryptocurrency market.

Hosni Hassan, a professor of finance at Bengha University, believes that the cryptocurrency issued by the state will not be attractive to investors, since the price will be determined by the government itself, and not by market demand.

“Users use digital currencies due to anonymity in their trading to avoid government oversight. They believe that they can make more profit because the exchange rate is not determined by the government, but based on the law of supply and demand. This makes the official digital currency, the price of which is determined by the government, unattractive for investment. "

The legal aspect related to cryptocurrencies in Egypt should also be mentioned: a couple of years ago there were cases of major fraud with cryptocurrencies, as a result of which the Central Bank of Egypt warned citizens about the risks associated with buying and investing in cryptocurrencies.

Publication date 08/16/2019
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