Egyptians are buying bitcoin ignoring the new banking prohibition laws
Despite the recent new banking law, Egyptian crypto trading volume and exchange sign-ups increased tremendously these past months, capping up an already high volume in January 2020.
The U.K based cryptocurrency exchange CEX.io rose by about 250% in January form the past month.
Konstantin Anissimov, the firms executive director made it known that bitcoin (BTC -3.63%) Trading volumes in Egypt on CEX.io had more than 400% from December to January, also other crypto platforms in the country experienced such trends.
For Other peer-to-peer crypto trading platforms like LocalBitcoin and Paxful, the rise was more gradual. The platform experienced steady growth in public trading. On local Bitcoins, new users registrations and trading volumes were up 100% between 2019 and 2020 in Egypt, says Jukka Blomberg, the firms chief marketing Officer.
According to the CMO, in terms of new Egyptian users and trading volumes, January 2021 was the best most in the last 3years.
Statistics have shown that Egypt has a large amount of unbanked population. World Bank report in 2018 on financial inclusion showed that up to 67% of the population above teenage do not have bank accounts. Egypt was also one of the top countries with high remittance globally (behind China, Mexico and the Phillippines)receiving about $29 billion, according to a 2019 report by the World Bank report, unbanked adults in Egypt received domestic remittances through cash or over-the-counter services.
The central bank prohibition has obviously not stopped Egyptians from buying more crypto instead, there is a dramatic rise in demand. According to Bloomberg, when a country faces political or economic challenges they tend to adopt the use of cryptocurrencies.
In certain emerging markets like Argentina and Nigeria, where high inflation and restrictions on foreign currency exchange in 2020 made the value of local currencies like bitcoin in search of a stable asset to their wealth which led to the high adoption of cryptocurrencies.
An Egyptian miner told AI Monitor back in September that "thousands of Egyptians" who are unemployed choose to mine and trade bitcoin since it doesn't require huge capitals to start.
Those who believe in cryptocurrencies will definitely find a way to lay their hands on it no matter the restrictions.