A recent market report from Localbitcoins suggests that traders or holders under the age of 34 are driving crypto volumes in Egypt. This rise in Egyptian crypto transactions is evidenced by P2P data showing weekly cryptocurrency traded volumes averaging $ 205,000 over much of the first quarter of 2021.
The premium on BTC
In addition to seeing increased volumes traded, Egypt is also experiencing a growing premium charged on top of the cryptocurrency’s spot price. For example, on March 16, 2021, BTC was trading for $ 64,000 in Egypt, but on the same day most international exchanges had the cryptocurrency’s value just below $ 57,000.
Meanwhile, a video report shared by the P2P platform tries to offer possible reasons why crypto trading has become more popular in Egypt. The report suggests that many of Egypt’s crypto traders are “looking for additional sources of income (either through) trading or scrapping bitcoin.” Furthermore, the report notes that with 67% of the adult population currently lacking a bank, cryptocurrencies will inevitably become a practical alternative for those financially excluded.
Renewed hostility from the central bank
Meanwhile, this growth in Egypt’s traded volumes suggests that traders aren’t overly concerned about the reports of the Central Bank of Egypt (CBE) renewed hostility to digital assets. In its latest warning, the CBE reiterates its previous stance against crypto assets such as BTC. The CBE said:
The Central Bank of Egypt claims that trade within the Arab Republic of Egypt is only limited to the official currencies approved by the CBE. In this regard, the Central Bank of Egypt is calling on all traders in the Egyptian market to be extremely careful and cautious and not to trade in these risky currencies.
Despite this “stern” warning from CBE, Egypt’s P2P data shows overall growth as the country’s crypto volumes. Hence, it seems that as interest in cryptocurrencies increases, the growth of the volumes actually traded will also increase.
What do you think is behind the growth in cryptocurrency traded volume in Egypt? Tell us what you think in the comments section below.
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