Egypt’s economic problems have driven locals to turn to cryptocurrencies as an alternative source of income. This is reported by Al-Monitor.
According to data from local media, unemployment in the country rose from 7.7% in the first quarter of 2020 to 9.6% in the second quarter. Economist Wael al-Nahas considers this factor, in combination with the recession and coronavirus restrictions, as the main drivers of citizens’ interest in Bitcoin trading and mining.
“Many young people began investing small sums, despite the rise in Bitcoin’s price,” the expert noted.
A representative of Bitcoin Egypt, Mohammad Abd el-Basir, said that amid the crisis more than 16,000 Egyptians joined the community. One of the miners admitted that after losing his job he invested all his savings in cryptocurrencies.
The lack of regulation in the sector remains a problem — some participants in the Bitcoin community fear they could be accused of fraud. Experts say authorities are expected to set out specifics on this issue in the near future.
Earlier, the Egyptian government began work on a bill that would allow licensed cryptocurrency companies to operate in the country.
Later, it emerged that the local central bank had taken an interest in the idea of launching a national digital currency.
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