As Africa increasingly becomes a global hotspot in the world’s cryptocurrency sphere, the countries of North Africa have generally played a negligible part in this journey. Some North African countries, including Morocco, still maintain cryptocurrency bans. However, Egypt, the ancient leader of both Africa and the Middle East, could have an integral part to play in this journey. What will the future of cryptocurrency be in Egypt? Cryptolydian analyses.
Egypt was for a long time averse to the concept of digital currency within its borders. This ended in May 2019, when the government lifted its longtime ban on cryptocurrency, reported Coindesk. Egypt, like many other Muslim nations, had previously banned cryptocurrency, considering it incompatible with Islamic shari’a law.
A draft law would require anyone trading in or creating businesses involving cryptocurrency to register with the Central Bank of Egypt (CBE). Applicants would subsequently receive a licence and permits from the CBE formally allowing them to trade cryptocurrency, reported Cointelegraph.
There are no reports on whether the draft bill entered into effect yet. But an array of blockchain development has been occurring in the interim in the highest areas of Egypt’s financial sector. In February 2020, Cointelegraph reported that the National Bank of Egypt signed an agreement with blockchain-based payments firm Ripple. The company would deal with remittances, which are increasingly sent as the global Egyptian diaspora continues to swell.
The future of cryptocurrency in Egypt
As more countries open up their borders to welcome in the revolutionary blockchain technology and the use of cryptocurrency in their sectors, Egypt seems to be on a similar trajectory.
Many analysts believe that a broad allowance and welcoming of cryptocurrency in the country could help alleviate some of the financial pressures affecting the country’s financial system. The global corona pandemic has caused a dramatic decline in Egypt’s tourism, one of the country’s largest sources of income. Blockchain News is convinced blockchain technology may mitigate some of the negative aspects the financial decline has had on Egypt.