We recently learned that a new banking law has given the Central Bank of Egypt (CBE) the full right to ban the establishment, operation or promotion of platforms issuing or trading digital currencies without having obtained the required licenses. This is a move indicating that the country has taken things at hand and it is gently softening its stance on Bitcoin as it gives permission to crypto start-ups to operate under an official license.
What is this new banking law all about?
According to an unnamed official source that spoke to Mena news agency, CBE’s Board of Directors has the full right to regulate all cryptocurrency transactions as well as the demand for multiple licenses under the newly drafted bill. This draft bill which was recently conceived does acknowledge the importance of financial technology in this modern era. In addition, the draft bill keeps pace with global banking changes and leverages modern technology to provide efficient financial and banking services.
The source, with his own words, said: “The new law provides legal authority for the electronic authentication of bank transactions, electronic payment orders, and transfer orders as well as for the electronic settlement of checks and the issuance and circulation of electronic checks and electronic discount orders provided that Board of Directors of CBE issue rules and procedures regulating all the aforementioned actions,”
It is worth noting that these electrotonic means will have the same authenticity as original papers if they meet the set technical criteria, the source stated. Unfortunately, at the time of our report, the newly drafted bill is still to be released for public reading. However, it won’t be long that the bill will be made public.
In conclusion, we’ll say that Egypt is becoming a fertile ground for cryptocurrency use. Remember that in 2018, Egypt’s Grand Mufti Shawki Allam hurriedly banned cryptocurrencies based on an Islamic law that declares these currencies as potential threats to the current financial system and highly risky due to scams and its volatile nature that yields fluctuating prices.