The bank referred to high risks of trading in cryptocurrencies as they are unstable and volatile.
The Central Bank of Egypt (CBE) has warned against trading in cryptocurrencies. The warning comes in pursuance of the law banning cryptocurrency issuance, trade and promotion, or setting up and operating related platforms.
In a statement Sunday, the CBE explained that the warning was issued in the course of following up news about cryptocurrencies like bitcoin. The bank also referred to high risks of trading in cryptocurrencies as they are unstable and volatile in their prices due to global unmonitored speculation.
“This makes investment in them full of risks and heralds the possibility of sudden losses of their value as no central bank or official authority issues them,” the CBE said in its statement.
“These are coins that have no tangible financial assets and are not supervised by any monitoring authority across the world. Cryptocurrencies lack the support and guarantees governments extend to official coins issued by central banks,” the bank added.
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