CBE completes initial feasibility study for potential Egyptian CBDC

By Yomna Yasser On Oct 2, 2024

Egypt Central Bank of Egypt's — The Central Bank of Egypt's (CBE) headquarters in the new administrative capital (CBE Photo)

The Central Bank of Egypt (CBE) has completed the first phase of a study to explore the feasibility of issuing a central bank digital currency (CBDC). The study, detailed in the CBE’s March 2024 financial stability report released on Wednesday, assessed various aspects of the CBDC project, including:

Egypt’s financial infrastructure: The existing payment systems and services were evaluated.
Considerations for implementing a CBDC: Strategic objectives, operational models, and potential benefits and risks were analyzed.
Technical feasibility: Cybersecurity and technological requirements were examined.
Legal and regulatory framework: The CBE is working on the legal and regulatory aspects necessary for a CBDC.

Following the lead of many developed countries, the CBE said it is preparing for a Proof of Concept (POC) phase. This will involve practical application activities to further assess the feasibility of a CBDC in Egypt, including its implementation methods and the necessary staff training and expertise.

This initial step marks significant progress in Egypt’s exploration of digital currencies and lays the groundwork for future developments in this area.

Attribution: CBE’s Financial Stability Report – March 2024