The Central Bank of Egypt (CBE) revealed that it is studying applying Central Bank Digital Currency (CBDC).
CBE indicated that CBDCs are safe and stable, as an alternative to other types of cryptocurrencies and their risks regarding the digital economy, financial inclusion and digital financial services, as a continuation of the steps taken by CBE against the spread and circulation of cryptocurrencies.
In its recent financial stability report, CBE said that internal and external working committees have been formed from all relevant ministries and national authorities, headed by CBE.
These committees will study CBDC usage in cooperation with several international institutions, stressing that it is making progress in that study.
CBE also revealed the most important future projects that it is currently working on, foremost of which is an electronic customer identification system known as eKYC, which aims to develop the Egyptian banking sector by providing a secure electronic means for users of financial services. This enables them to create an electronic financial identity that allows the verification of customer data electronically, enabling them to open bank accounts digitally without having to visit branches of their banks.
According to CBE, this step leaves a positive impact on the process of listing new clients in banks in an easy, fast and safe electronic way. It will also facilitate procedures and reduce crowdedness in bank branches to register and obtain financial services.
CBE also revealed that it plans to launch a digital savings and lending project through mobile wallets. CBE added that the project aims to provide electronic lending to customers of mobile wallets in real time through a secured channel based on their credit behaviour.
CBE stated that it is working with the Egyptian Credit Bureau to finalize the technical aspects of the project, allowing users access to borrowing in real time around the clock through their e-wallets.
CBE said that the rules for establishing digital banks in Egypt will be set, and are considered a crucial tool for providing banking services electronically to customers, which has a great impact on achieving financial inclusion.
CBE stressed the importance of developing the regulatory and legislative framework to create a new type of bank that provides services electronically and attracts a new segment of customers. The Central Bank of Egypt pointed out that it is currently working on developing the regulatory framework for licensing digital banks.