According to yesterday’s reports by a local newspaper, an anonymous source within the Central Bank of Egypt has revealed that the latter would like to issue a cryptocurrency similar to what was done by the crypto project created by Saudi Arabia and the United Arab Emirates.
It all began with the Facebook project, Libra, which would have led Egypt to consider how much this digital currency could be harmful to the monetary system of its country.
Furthermore, in order not to lose ground in this sector, considering that China also intends to launch its own state cryptocurrency soon, Egypt would have decided to jump into the market.
The legal aspect of cryptocurrencies in Egypt must also be mentioned: a couple of years ago there were cases of arrest for fraud, an event that led the Central Bank of Egypt to warn citizens of the risks associated with cryptocurrencies.
In fact, a Professor of Finance at the University of Benha, Hosny Hassan, said that a state crypto would not be attractive to the investor since the price will be determined by the government itself and not by the market.
“Digital currency users take advantage of the secret character of trading to escape government oversight. They believe, wrongly so, that they can turn a quicker profit since the exchange rate is not determined by the government but is based on the law of supply and demand. This makes official digital currency, whose price is determined by the government, unattractive.”