The Central Bank of Egypt (CBE) plans to introduce a digital currency called the E-Pound by 2030 to boost the competitiveness of its national currency, according to a government document. This initiative was revealed in a government document titled "Document on the Most Important Strategic Directions of the Egyptian Economy for the New Presidential Period (2024-2030)" released in January.

The report, commissioned by the Egyptian Council of Ministers' Information and Decision Support Center, outlines key policies critical to the Egyptian economy over the next six years. This digital currency aims to boost the competitiveness of the Egyptian Pound but also enhance the efficiency of the country’s monetary policy.

One of the priorities emphasized in the document is the launch of the CBDC, which aligns with the Egyptian monetary authorities' ongoing efforts to develop the financial sector. By the end of the second quarter of 2023, the country's financial inclusion rate stood at 67.3%. However, the introduction of the CBDC aims to achieve full financial inclusion, reaching 100%, by 2030.

This move marks a significant milestone in Egypt's digital transformation journey. In July, the CBE introduced regulations for the licensing, registration, control, and supervision of digital banks. This came after data revealed a 5.4% annual increase in the financial inclusion rate.

In an interview with Egypt Independent, Sayed Khedr, an esteemed Egyptian economic expert, lauded the benefits of an officially issued digital currency, highlighting its advantages compared to anonymously issued digital currencies like bitcoin.

“We do not know who invented Bitcoin, so the safety rate is low. On the contrary, if digital currencies are officially implemented by the central bank, the security rate will be higher,” the expert said.

Furthermore, Khedr sought to reassure the Egyptian public that the launch of the CBDC would not lead to a reduction in the number of banknotes in circulation. He also stressed that the wide-scale adoption of the CBDC has the potential to indirectly support the economy.

The report outlines other ambitious targets for the country’s digital economy sector in the coming years. By 2030, the number of electronic wallets is expected to soar from 34.4 million in mid-2023 to 80 million. Additionally, there is a target to increase the number of mobile towers from 31,000 in FY2022/2023 to 45,000 by the end of 2030.

The Central Bank of Egypt. Image Source: Bollak/ Shutterstock.com