Many countries all over the world have and are still getting involved in cryptocurrency mining. Some of these countries include the United States, Iran, China, Canada, etc. Nonetheless, we will be looking at the state of crypto mining in Egypt
Crypto Mining in Egypt
Cryptocurrency is somewhat popular in Egypt. There are at least 3.32 million crypto owners in the country.
In 2018, Dar al-Ifta, Egypt’s primary Islamic legislator, issued a religious decree categorizing crypto commercial transactions as haram or prohibited under Islamic law. Dar al-Ifta expressed concerns that cryptocurrencies could pose threats to national security and central financial systems. Even this decree, known as a fatwā, represents a legal opinion but is non-binding.
Following this, the Central Bank of Egypt (CBE) issued a warning in January 2018, cautioning against the trading of cryptocurrencies like bitcoin due to their high risk. The CBE emphasized that commerce within Egypt should only involve official paper currencies approved by the Bank.
However, in 2019, the CBE announced its intention to draft a law that would prohibit the creation, trading, or promotion of cryptocurrencies without proper licensing. This shift in stance indicates a changing perspective on digital currencies, especially cryptocurrencies.
In 2020, the Egyptian Parliament passed Central Bank and Banking Sector Law No. 194 of 2020. This law introduced various technological and digital mechanisms to facilitate the digital transformation of Egypt’s banking and financial sector. Among these measures are provisions for digital finance, digital settlement of cheques, E-Money, cryptocurrencies, FinTech, and RegTech. This law gives the Central Bank of Egypt authority over digital currencies. This legislation directly impacts the legitimacy and activities of cryptocurrency mining and trading.
Why Crypto Mining Could Do for Egypt
Economic Opportunities
Crypto mining can create new economic opportunities by attracting investments and generating employment in Egypt’s technology sector. As the crypto industry grows, there is potential for job creation in areas such as hardware manufacturing, software development, and infrastructure maintenance.
Revenue Generation
Successful crypto-mining operations can generate revenue for individuals and businesses in Egypt. Also, miners can earn rewards in the form of newly minted coins or transaction fees, providing an additional source of income.
Technological Innovation
Crypto mining can contribute to technological innovation in Egypt. As miners seek to optimize their operations and maximize efficiency, they may develop new hardware, software, and techniques that contribute to technological advancements in the country.
Financial Inclusion
Crypto mining can promote financial inclusion. It does this by providing access to alternative financial systems.
Also read : Understanding Cryptojacking: Unauthorized Cryptocurrency Mining Explained
Cryptocurrency Mining in Other Countries
As we earlier pointed out, different countries have adopted cryptocurrency mining. These countries have unique regulatory frameworks and economic ramifications. Seeing how these countries handle crypto mining can give Egypt useful insight into its positives.
USA
Cryptocurrency mining and trading in the United States operate within a relatively open market setting. The nation has state-level regulations and federal oversight. This creates a framework that promotes innovation while prioritizing consumer protection and financial system integrity. This well-balanced strategy has cultivated a vibrant ecosystem for cryptocurrencies.
Canada
Canada’s stance on cryptocurrency mining comes from a regulatory framework that encourages both innovation and consumer safeguarding. The country allows cryptocurrency mining while implementing guidelines to regulate its operations. This helps to address concerns such as energy consumption and financial compliance.
Libya
Libya uses its natural resources to fuel cryptocurrency mining operations. This emphasizes the inventive use of national assets to expand the economy and stay in the international and domestic digital finance world.
Iran
Iran uses a state-supported model for cryptocurrency mining. This is an important and sensitive component of a comprehensive economic strategy aimed at lessening the repercussions of international sanctions and harnessing digital currencies to fortify the national economy.
Final Words
Even with uncertainties about the legalities of cryptocurrency mining in Egypt, the concept can contribute greatly to the country’s well-being
