January 1, 2023

Egypt Interested in Adopting CBDC

Central Bank of Egypt

Central Bank of Egypt

The Central Bank of Egypt (CBE) showed its interest in adopting the central bank digital currency (CBDC), which enjoys financial stability and security rather than cryptocurrencies.

Central Bank Digital Currency (CBDC) is a new form of money that exists only in digital form. Instead of printing money, the central bank issues widely accessible digital coins so that digital transactions and transfers become simple.

In a report, CBE said internal and external working committees from all related ministries and bodies had been formed under the presidency of the central bank to study the adoption of CBDC, Russia Today reported.

In this regard, Banking expert Sahar El Damaty said the CBDCs are secured, through which goods and services are purchased from the internet, adding they use a digital ledger on the Internet, with strong encryption to ensure and protect financial transactions over the Internet.

Damaty lauded the CBE’s interest in implementing CBDCs, saying it helps to develop the currencies market in Egypt and boost the economic growth rate.

In February 2022, the IMF said around 100 countries are exploring CBDCs at different levels. Some researching, some testing, and a few already distributing CBDC to the public.

CBDCs offer more resilience, safety, greater availability, and lower costs than private forms of digital money.

In September 2022, the CBE issued a warning about cryptocurrencies, cautioning citizens from dealing with any and all types of encrypted virtual currencies. The CBE noted that virtual currencies involve high risks, including remarkable fluctuations in their value and their use in financial crimes and e-piracy.

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