Summary
- Egypt was ranked 26th globally in the annual crypto adoption index.
- The authorities have historically taken a strong line against crypto, banning its trade and promotion, and warning against its use.
- No immediate policy changes are expected, particularly those related to crypto, but the authorities have shifted their position to a degree, researching a CBDC and considering the development and use of blockchain.
- For more stories about how and why crypto and blockchain are being adopted in different countries globally, visit the Crypto in Action pages.
What’s driving adoption?
It is estimated that 3 million Egyptians own crypto. This is a small percentage in a country of 119 million, but given the authorities’ attitude, it’s a surprisingly large number.
Interest in crypto is growing, particularly among the technically literate youth and startups. Media coverage of crypto is reported to be mixed, with some outlets expressing caution while curiosity marks others.
These factors, coupled with economic problems, underpin interest in and the adoption of crypto.
In early 2024, the international community bailed out the economy, which, as Africa’s second-largest economy, was deemed too big to fail. Subsequent structural reforms are stabilizing the situation, but currency devaluation and inflation have been hallmarks of the economy in recent years.
In March 2024, the central bank floated the pound, in a move to stabilize the currency and shut down the country’s black market, prompting a 40% depreciation of the currency. At the same time, inflation, although declining, remains high – it’s expected to fall below 20% in 2025, but was 33% in 2023.
Economic instability typically prompts interest in crypto as users look for an alternative to the domestic economy, and Egypt has been no exception, as individuals have sought a means to protect their wealth and avoid inflationary pressures.
The authorities’ attitude towards crypto in Egypt
The authorities – both religious and state – have taken a hard line on crypto, prohibiting its use without prior approval.
Repeated warnings (made in 2018, 2021, 2022, 2023, and again in 2025) to the public have been issued about the risks involved in using and trading crypto.
The first of these was religious, with the country’s Dar al-Ifta (Islamic advisory body) issuing a fatwā (an edict) declaring cryptocurrencies to be harām (forbidden under Islamic law). The ruling stated that crypto’s speculative nature and potential for misuse went against the principles of Islamic finance.
Shifting from religious to legislative, in 2020, Law No. 194, the Central Bank and Banking System Law, was enacted. This is the centrepiece of the country’s approach to digital assets, and expressly prohibits the issue, trade, or promotion of “cryptographic units” (a term that covers all such assets) without the Central Bank of Egypt (CBE)’s approval.
This is part of a wider approach to control financial technologies and ensure compliance with national legislation, prevent illicit usage, and protect monetary stability. As with a number of other countries, the authorities have said that the decentralized nature of crypto could undermine the stability of the Egyptian pound.
Additionally, the authorities have said that they are seeking to protect Egyptian citizens from the often volatile, speculative markets. They have also suggested that the anonymous nature of crypto transactions makes them attractive to those involved in illicit activities, again, something the authorities are keen to curtail.
In a warning against the use of crypto issued in 2021, the authorities stressed the lack of legal protection for users, emphasizing that any losses incurred would not be recoverable under Egyptian law.
At the same time, however, the government is interested in fintech. Since 2017, it’s had a digital payments agenda in place, and in 2019 launched Meeza, a prepaid card solution aimed at the country’s large percentage of unbanked people. As a result of this and other moves, access to – and familiarity with – digital payments and mobile wallets has grown exponentially.
In turn, it’s become much more common for individuals to use mobile wallets not only to pay for goods and services, but for money transfers.
A limited market for crypto
The religious and legislative rulings have undoubtedly limited the market for crypto adoption. There are severe punishments for breaking the law, including imprisonment, the confiscation of assets, and large fines. Furthermore, the fatwā has been influential, further dampening interest in the sector.
Article 206 of Law No. 194 explicitly discourages the exploration of blockchain-based technologies. Without major changes in legislation and attitude, however, development prospects are limited. There are no sizeable government-backed blockchain projects to support the development of the technology or its usage. Similarly, related technologies like DeFi can’t thrive without blockchain’s development.
Access to popular global crypto exchanges is limited. Mining is prohibited without CBE authorization, and promotion of crypto is also prohibited. Notably, a fresh warning about crypto was released in 2025 after there was a rise in local online adverts related to crypto investments. Furthermore, without access to legal recourse, users are exposed to risk, all of which limits the sector’s uptake and development.
What next?
Existing legislation doesn’t ignore the crypto sector. In fact, the 2020 law introduced both technological and digital means to support the transformation of Egypt’s banking and financial sector. Among these were definitions and instructions covering crypto, fintech, regtech, the digital settlement of cheques, and even licensing instructions for digital banks.
To date, however, the focus has remained on pursuing means to curtail the potential use of crypto. Cognisant of the use of crypto for remittance transfers, the National Bank of Egypt signed a deal with Ripple in 2020 to help lower the costs of remittance payments. Egypt is one of the world’s largest recipients of remittances, which support approximately 5% of its GDP, and they showed a notable rise in 2025.
Similarly, it has been suggested that the prime motivation for a CBDC is to counter crypto adoption.The domestic press reports that work is under way on the creation of a CBDC, the e-Pound, which is scheduled for 2030.
There is, however, some evidence to suggest a softening of stance on blockchain. The central bank has permitted these solutions in several sectors, including carbon markets, trade and logistics, possibly suggesting an interest in specific practical uses.
Timeline of developments
2018
Dar al-Ifta issued a religious decree prohibiting commercial transactions in crypto.
2019
The CBE announced it was working on a draft law that would ban the creation, trading, or promotion of crypto without a license.
2020
Law No. 194, the Central Bank and Banking System Law, was promulgated, prohibiting the issue, trade, or promotion of cryptographic units without the central bank’s approval.
2021
In January, the CBE issued a formal statement warning the public against using or trading crypto, and warning of the lack of domestic legal protection for users.
2022
In September, the CBE issued another statement warning of the risks of fraud and volatility related to crypto usage.
2023
Another warning, known as the Fourth Warning Statement on Cryptocurrencies, was issued, in which the CBE “warns citizens of partaking in or being subject to such fraudulent acts and legally criminalized activities.”
The CBE said that no license had been issued relating to crypto trading activities in the domestic market because of the risks involved in crypto trading activities, financial crimes and “electronic piracy”.
It also stressed that crypto was not issued by “any central bank or official centralized issuing authority” and therefore lacked any guarantee of stability or protection of user rights.
2025
In May, the authorities issued yet another warning about crypto transactions following a rise in local online advertisements promoting such investments.
Outlook
At this stage, there’s little to suggest that the authorities will change their crypto strategy. Changes in the international environment may engender sufficient trust to support a shift towards a licensed, regulated sector, but this is conjecture.
Domestic adoption will, in part, depend on at least three things: economic conditions, how far crypto interest outweighs the risk of punishment associated with its use, and the development of the wider fintech and blockchain ecosystems.
This points to a mixed outlook. The economy is stabilizing, making crypto less appealing, but at the same time, the population is becoming ever more digitally literate and the digital transaction landscape is developing quickly.
It has been suggested that whatever happens in Egypt will have an effect on MENA, given its regional influence. Notably, MENA, with exceptions like the UAE, has not embraced crypto and blockchain as swiftly as other regions. This is changing (transaction volumes reached more than $60 billion in December 2024) with adoption now rising, but from a low base, making the policy choices of countries like Egypt of wider interest.
