A recent market report by Localbitcoins suggests that traders or owners under the age of 34 are driving crypto volume in Egypt. This growth in Egyptian crypto transactions is supported by P2P data, which shows weekly crypto asset trading volumes averaging $205,000 for most of the first quarter of 2021.
Premium on BTC
In addition to the increase in trading volume, Egypt has also been affected by the increase in the premium applied to the spot price of crypto assets. For example, the BTC was launched on the 16th. March 2021 in Egypt traded at $64,000, but the crypto asset was worth just under $57,000 on most international exchanges the same day.
Meanwhile, a video report shared by the P2P platform tries to give possible reasons why crypto trading has become more popular in Egypt. The report suggests that many Egyptian crypto traders are looking for additional revenue streams (through) trading or peddling bitcoins. Additionally, the report notes that with 67% of adults currently without a bank, cryptocurrencies will inevitably become a convenient alternative for those without financial inclusion.
Central bank utility updated
At the same time, this increase in trading volume in Egypt suggests that traders are not too worried about reports that the Central Bank of Egypt (CBE) is once again hostile to digital assets. In its latest warning, the EBC reiterates its previous stance on crypto assets like BTC. The CBI said:
The Central Bank of Egypt declares that trade within the Arab Republic of Egypt is limited to the official currencies approved by the CBE. The Central Bank of Egypt therefore urges all traders in the Egyptian market to exercise extreme caution and not to trade in these high risk currencies.
However, despite this clear warning from the CBE, Egyptian P2P data shows an overall increase in crypto trading in the country. So it seems that interest in cryptocurrencies is growing, as is the actual transaction volume.
What do you think is the cause of the increase in trafficking in Egypt? Tell us what you think in the comments below.
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