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What benefits will Egypt gain by issuing a digital pound?

Digital currencies have spread in use around the world, attracting many investors due to their high value and price.

The Central Bank of Egypt has decided to study issuing a digital pound in cooperation with the International Monetary Fund and the World Bank, as part of the Egyptian state’s efforts to enhance its transition to the digital economy and expand the scope of instant electronic payments between individuals and companies.

Economic expert Sayed Khedr said there has been a recent spread of virtual currencies, with China having implemented its own digital currency system.

There is more security when digital currencies are used officially by countries, he noted, as digital currencies are considered anonymous.

“We do not know who invented Bitcoin, so the safety rate is low. On the contrary, if digital currencies are officially implemented by the central bank, the security rate will be higher,” Khedr said.

If there is a choice to buy the digital Egyptian pound or other currencies of unknown origin, the choice will be for the Egyptian pound, he said, “Because we know its source, while the degree of risk in buying other currencies is significantly higher because we do not know its origin.”

Khedr pointed out that digital currencies are traded on the stock exchange, and have dedicated sites such as “Forex“.

“I believe that it will be a good step to expand the horizons of indirect investments, increase cultural awareness of the use of indirect currencies, and expand the investment base more,” he said.

“I think that this idea is good, especially with the digital transformation that is currently taking place.”

Khedr advised that the digital pound must be marketed well, especially with the decrease in the value of the pound.

Therefore, the promotion and marketing of the Egyptian digital currency should come about strongly like in China, which entered the world of digital transformation through the yuan, and the US which has already launched an official digital currency.

The idea behind the digital pound is to issue an application or website through the banks, with the digital pound is purchased through it. If the price of the digital pound rises, there will be a profit, and this currency or pound can be converted into a pound that can be traded and used.

Khedr assured that that the issuance of banknote pounds would not be reduced if the digital pound was launched, as virtual currencies are completely different from banknote currencies, but still contribute to supporting the economy indirectly if they are widely marketed.

Edited translation from Al-Masry Al-Youm

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