The Egyptian government is discussing plans to issue a national digital currency from a central bank. According to Al-monitor an anonymous source in the central bank, the initiative of the authorities is explained by the unwillingness to miss opportunities and positions in the financial sector.
In addition, the Egyptian government hopes that issuing their own digital currency will increase the coverage of financial services: now only 10% of residents have bank cards or an account with a credit institution.
It is noteworthy that the government’s initiative will not affect the current ban on the circulation of digital money for individuals. However, according to the source, the board of directors of the central bank will be able to issue permits to companies for certain operations with a new type of asset.
At the same time, experts suggest that the Egyptian digital currency will not be in demand among investors, since its price will be formed by the government, and not by market factors.
Note that the final decision on the development of the Egyptian digital currency has not yet been made because of the many questions and suspicions of the authorities regarding this type of asset.
Recall that in May, the Egyptian authorities began to draft a bill that will allow licensed cryptocurrency companies to operate in the country.