CBE embraces all technological trends, noted the deputy governor
As part of the Central Bank of Egypt’s (CBE) strategy to accelerate digital transformation and investments in the banking system, CBE will be launching an instant payment module.
The module, after finalizing regulations and approvals, will also introduce a soft point of sale (POS) system that allows the use of mobile phones as points of sale systems, said CBE Deputy Governor Rami Aboul Naga.
On CBE’s recent warning against trading cryptocurrencies, Aboul Naga noted that “The concern and the warning did not emerge because we disregarded the cryptocurrency. On the contrary, we are following it, and we are onboarding very young talents at the central bank to understand these kinds of technologies and how we would best address them”.
Aboul Naga’s comments came during a recent webinar organized by the British Egyptian Business Association (BEBA) titled "A Brave New World: Digitalization of the Banking System”.
Despite increased demand, due to companies such as Tesla heavily investing in bitcoin and accepting it as a means of payment, the deputy governor explained the high risks of cryptocurrency. He went on to state that many investors are seemingly not aware of capital risk exposures, pointing to how cryptocurrencies are not backed by any tangible assets or issued by central banks or official central authorities, alongside the anonymity of its users.
The CBE issued warnings since 2018 and, recently, last month, against trading with cryptocurrency.
“We are not, in any way, against using the technology itself. We have just learned that some trends can be destructive and could lead to significant economic losses to users, who might not be fully aware of what they get themselves in,” highlight Aboul Naga.
CBE embraces all technological trends, noted the deputy governor, emphasizing that it does hold the responsibility of raising more awareness about it as a regulator.
In regards to a future possible currency devaluation, Aboul Naga commented that “no one knows what will happen with the currency level, as it depends on demand and supply dynamics. At the central bank, we are not concerned about the currency levels. We're concerned about the availability of liquidity in foreign currency”.
