Egypt pushes forward with blockchain technology for trade and identification, while maintaining its ban on cryptocurrencies.
- Egypt balances strict crypto bans with blockchain adoption in trade, logistics, and identity management. - CBE's 2020 law prohibits crypto trading, but blockchain is tested for ACI systems and land registration. - CBDC exploration and startups like MelBet highlight blockchain's role in remittances and secure transactions. - Officials aim to leverage blockchain for economic reforms while maintaining regulatory caution.
Egypt is seeing significant changes in its blockchain sector as authorities weigh regulatory caution against the potential benefits of decentralized technologies. Since 2020, the Central Bank of Egypt (CBE) has enforced a strict prohibition on cryptocurrency trading, but recent developments indicate a growing interest in blockchain’s uses outside of speculative finance. Both government representatives and industry experts are now focusing on how blockchain can be applied in areas like trade, logistics, and identity verification, reflecting a move from risk avoidance to exploring practical value.
The CBE’s regulatory stance, outlined in Law No. 194 of 2020, forbids the creation, trading, or marketing of cryptocurrencies without official consent, a position further supported by a 2018 religious ruling that classified digital assets as haram under Islamic law. Nevertheless, blockchain technology is being adopted for purposes beyond finance, as shown by on-chain data. For example, Egypt’s Advanced Cargo Information (ACI) system at customs employs blockchain to boost transparency and minimize fraud in international trade. This fits into wider efforts to upgrade public infrastructure, including talks about using blockchain for land registration and improving supply chains.
Key meetings in Cairo have gathered scholars, financial professionals, and technology leaders to discuss how blockchain can help solve regional issues. Pravica’s CEO, Mohamed Abdou, highlighted the idea of “on-chain banking 2.0,” imagining systems that support instant international money transfers and secure lending. These innovations are especially important given that remittances from Egypt’s 15 million citizens abroad make up 9% of the nation’s $386 billion GDP. At the same time, organizations like EMURGO Labs have stressed the importance of Egypt moving from a cautious observer to an active player in blockchain-powered economic change.
The government’s simultaneous interest in a Central Bank Digital Currency (CBDC) demonstrates the ongoing balance between regulatory caution and technological advancement. Although the CBE has not yet introduced a digital pound, officials have recognized blockchain’s potential to strengthen monetary control and promote financial inclusion. This approach mirrors a global pattern, with countries such as the UAE and Saudi Arabia adopting regulated blockchain systems, while Egypt maintains a more conservative stance.
Even with regulatory barriers, blockchain startups and universities in Egypt are experimenting with decentralized solutions. For instance, the MelBet betting service has adopted blockchain technology to provide secure and transparent transactions for sports betting. These examples show blockchain’s value in industries where trust and transparency are crucial, despite ongoing debates among policymakers about how to balance progress and stability.
The future remains uncertain. While Egypt’s blockchain environment is advancing in non-financial fields, the lack of clear regulations for cryptocurrencies restricts wider use. Still, the government’s emphasis on practical, utility-based projects points to a long-term plan to leverage blockchain for document authentication, supply chain tracking, and digital identity. As international interest in blockchain and global liquidity trends shift, Egypt’s experience may offer insights into managing the complex relationship between regulation, innovation, and economic growth.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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