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Egypt to Explore Digital Pound Implementation

December 10, 2023
Photo credit: BBC.

The Central Bank of Egypt (CBE) is actively considering the issuance of a digital pound in collaboration with the International Monetary Fund (IMF) and the World Bank, aiming to propel the country’s digital transformation..

Director of the Cairo Center for Economic and Strategic Studies, Abdel Monem Al-Sayed, told Al-Masry Al-Youm that the digital pound is a digital version of the traditional paper currency but is transacted through electronic payment systems. He noted that it is used in transfers between individuals and companies, as well as in electronic buying and selling and international electronic exchanges.

During an interview on the Sada Al-Balad television channel, Al-Sayed stated that the current focus of the state is on digital transformation, aiming to reduce the use of cash and printed currency.

This digital currency seeks to provide a stable alternative within the financial landscape, particularly in contrast to the inherent volatility of cryptocurrencies such as Bitcoin.

The envisioned digital pound could play a versatile role in transactions, trade, and money exchange between individuals and institutions through mobile phones. Additionally, its implementation is expected to contribute to the reduction of physical banknote issuance.

Although the studies on the digital pound are anticipated to take some time, officials expressed confidence that they are progressing in the right direction, highlighting the strategic importance of this initiative for Egypt’s evolving digital landscape.

The introduction of the digital pound aligns with Egypt’s comprehensive strategy to shift towards a digital economy. This initiative comes as part of broader efforts aimed at expanding the prevalence of instant electronic payments among individuals and companies. 

The ultimate goal is to streamline transactions and eliminate the necessity for intermediaries, marking a significant step in Egypt’s journey towards a more efficient and digitally-driven economic landscape.

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