The Central Bank of Egypt (CBE) has allowed on Thursday banks to issue electronic currencies subject to its supervision provided that each coin in the mobile payment service equals one Egyptian pound.
In its third version of mobile payment regulations, the CBE explained that the issuance of electronic currencies is only limited to banks under its supervision and that get its prior consent to take this step.
The CBE said that the authorised banks will operate a system for managing the records of electronic currencies, which show the value of the issued money, the system users, and service providers.
This system monitors the payment orders of electronic currencies and the issuance of detailed reports (Trail Audits) on payment orders, linking the operations to system users and service providers, the CBE said.
The regulation also states that the bank issuing electronic units must have deposits in Egyptian pounds that are no less in value than the electronic units.
According to the CBE, these electronic currencies are stored on electronic devices or media and are accepted as a method of payment by other persons or entities in addition to the issuing bank.
The electronic currencies should be exchangeable to cash (Egyptian pounds) and are issued in accordance with the rules issued by the CBE.
Late March, the CBE said that all financial transactions carried out within the Egyptian banking system are limited to currencies that are officially accredited by the CBE, urging all bank clients not to use high-risk cryptocurrencies.
The CBE said that cryptocurrencies involve a high degree of risk, dominated by a wide fluctuation and instability in their price values.
It added that such currencies have no physical assets; they are not subject to the supervision of a central authority and lack the official and governmental support that official currencies enjoy.