Egypt is reportedly working towards e-pound CBDC by 2030

North African country, Egypt is making moves with its Central Bank Digital Currency (CBDC) project and is set to launch around 2030, per reports.

According to reports from the Egyptian press, the e-pound, which will basically be the Central Bank of Egypt (CBE) digital currency, is expected to boost the competitiveness of Egypt’s national currency and enhance the efficiency of monetary policy.

Central bank digital currencies (CBDCs) are a form of digital currency issued by a country’s central bank. They are similar to cryptocurrencies, except that their value is fixed by the central bank and equivalent to the country’s fiat currency.

An example of a CBDC is Nigeria’s eNaira which was launched in October 2021. Nigeria’s CBDC to a lackluster growth and unremarkable reception amongst the country’s population.

More news on the Egypt’s e-pound

Per the local reports, the introduction of this digital pound is part of a digitalisation program for financial services. 

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The Information and Decision Support Center of the Egyptian Council of Ministers reportedly developed a research project titled ‘The Document on the Most Important Strategic Directions of the Egyptian Economy for the New Presidential Period (2024-2030).’ This project outlines the policies for the Egyptian economy until 2030, focusing on economic and social trends.

The introduction of the digital pound (E-Pound), which is set for 2030 aims to enhance the competitiveness of the national currency and improve the efficiency of monetary policy. The move is part of leveraging opportunities presented by digital transformation to advance the Egyptian financial sector and elevate the effectiveness of monetary policy.

As part of its objectives, the Egyptian government aims to increase the number of digital financial wallets to around 80 million by the year 2030. This effort is aligned with the broader goal of fostering digital financial inclusion and expanding the usage of digital financial services in the country.

The Director of the Cairo Center for Economic and Strategic Studies, Abdel Moneim al-Sayed, emphasized the significance of the digital Pound following the recent announcement by the Central Bank of Egypt about its forthcoming issuance. He stated that the digital pound will serve as the electronic counterpart of the traditional paper Poundz

Also, the digital Pound is expected to be transacted through the electronic payment system, representing one of the government’s objectives in embracing digital transformation and diminishing the reliance on paper currency transactions.

The advent of CBDCs in Africa 

As the global financial landscape evolves, Central Bank Digital Currencies (CBDC) have gained attention as a potential game-changer. In Africa, however, the adoption of CBDC has been tepid, with Nigeria being the sole pioneer in implementing its digital currency.

Nigeria took a bold step by launching its CBDC, the eNaira, to enhance financial inclusion and reduce transaction costs. Despite this move, the broader adoption of CBDC across the country has been sluggish. 

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Several factors contribute to the slow uptake. Chief among them are scepticism and a lack of awareness among the public. Many people remain unfamiliar with, or see literally no benefits of digital currencies, leading to a reluctance to transition from traditional cash transactions.

Despite these challenges, Egypt is poised to follow in Nigeria’s footsteps by introducing its own CBDC. As more countries observe the outcomes of Nigeria’s venture into digital currency, it is likely that confidence will grow.

It is however important to be more circumspect about the purpose of launching CBDCs. A country is supposed to embark on the project for the inherent value and benefit, not just for the sake of sounding cool and trendy.