Central bank of Egypt again bans crypto trading and cryptocurrencies

Central bank of Egypt again bans crypto trading and cryptocurrencies

 The Central Bank of Egypt in a recent post on its website, and in its efforts to monitor crypto currencies such as Bitcoin and others has reiterated its stern warning against trading in all kinds of cryptocurrencies, mainly Bitcoin, due to the extremely high risk associated with them.

According to the statement, " Cryptocurrencies are typically characterized by fluctuations and significant price volatility; as their global speculations are completely unregulated, a fact that makes investments in them quite risky and highly speculative, and are likely to lead to sudden losses of their whole value.".

It is worthy to note that cryptocurrencies are not issued by any central bank, or any official central issuing authority that can be held accountable, the CBE added.

Moreover, cryptocurrencies are not backed by any tangible assets and are not supervised by any regulators worldwide, and consequently they lack the official governmental guarantee and support enjoyed by the other official currencies issued by central banks, it said.

In the same context, the CBE asserted that trading within Egypt is only confined to approved official currencies and called on all traders within the Egyptian market to not engage in any trading in these high-risk currencies. 

In 2019 Egypt's Central Bank also spoke out about cryptocurrencies banning them, and then in 2020 was looking into how to regulate them while working on CBDC project.  

Kuwait Central bank also recently spoke out against crypto investment and trading.

But how can you ban something that you have no control over is the question. The whole point of Bitcoin and cryptocurrencies was that governments, central banks, and the financial sector could not control it. 

 

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