Where Does Egypt Stand on AI & Crypto? The Risks, the Opportunities, and the Road Ahead.
Diamond Professional Consultants
Experts in Enterprise Performance Management and Business Analytics for the private and public sector
Imagine a young entrepreneur in Cairo who builds a thriving online business, but every international payment she receives is delayed by banking regulations. Frustrated, she turns to cryptocurrency—fast, borderless, and decentralized. Within months, she’s running a global company without ever setting foot in a traditional bank.
This isn’t some distant future. It’s happening today.
Cryptocurrency and Artificial Intelligence (AI) are transforming the way businesses operate. Some countries are embracing these technologies, while others, like Egypt, remain cautious. Hatem Elkady, CEO of Diamond Professional Consultants, believes that ignoring digital assets entirely isn’t the solution.
“We need to regulate, not reject. The world is changing, and we must find our place in it.”
In this article, we’ll explore:
The Crypto Debate: Between Risk and Opportunity.
Globally, Crypto is Booming—But Challenges Remain.
Cryptocurrencies have evolved from an experiment to a multi-trillion-dollar industry. Bitcoin, Ethereum, and countless other digital assets are now part of serious financial discussions. However, central banks worldwide remain cautious because:
? Crypto is highly volatile
? It operates outside of government control
? It raises concerns about money laundering and fraud
Some governments have responded by developing Central Bank Digital Currencies (CBDCs)—government-backed digital currencies that combine crypto’s efficiency with regulatory oversight. Countries like China, the U.S., and the EU are actively working on these solutions.
“It’s not about whether digital currencies will dominate—it’s about who controls them,” says Elkady.
The Big Question: Who Governs Crypto?
Today, there are billions of dollars of cryptocurrency in circulation. But who governs it? It’s a fantastic question because when you talk to crypto enthusiasts, the first thing they say is decentralized decentralized! No leaders, no banks, no authorities.
But every major project needs some form of leadership—whether it’s in development, maintenance, or governance. Even Bitcoin, the most decentralized blockchain (Blockchain a global database of a decentralized network of computers worldwide that automates trust),
still has a small group of insiders responsible for maintaining the code. So, while decentralization is a core principle, influence remains concentrated among a few key players.
Egypt’s Position: Cautious but Open to Change
While some governments are experimenting with central bank digital currencies (CBDCs), others remain cautious, worried about crypto’s potential to facilitate money laundering and financial crimes. Countries like Jordan have prohibited financial institutions from dealing with crypto while allowing individuals to trade at their own risk
Egypt’s Central Bank (CBE) has taken a hard stance against cryptocurrencies, even criminalizing transactions under its 2020 banking law. Why?
? Crypto could weaken the government’s ability to control inflation.
? Financial stability is a top priority.
? Unregulated digital currencies pose risks to national security.
? Unlike fiat currencies, cryptocurrencies are not backed by governments or regulated financial institutions.
Yet, behind the scenes, Egypt is experimenting. The government has explored blockchain technology and digital payments, collaborating with China’s digital yuan initiative. “Egypt is watching, learning, and preparing,” Elkady explains. The outright ban isn’t forever. The key is finding a model that works for our economy.
AI and Crypto: A Powerful Combination.
While crypto shakes up finance, AI is changing how we manage money. The intersection of these two technologies is creating new opportunities and challenges.
How AI is Reshaping the Crypto Market
? Predictive analytics: AI models forecast price trends, helping investors make better decisions.
? AI-driven trading bots: Automate crypto trading for higher efficiency.
? Regulatory compliance: AI helps banks track illicit transactions and improve overall financial security.
What’s Next for Egypt? A Balanced Approach.
Elkady believes that Egypt must adopt a three-part strategy to navigate the future of finance:
“If we prepare now, we can turn disruption into an advantage,” Elkady emphasizes.
The Big Question: Are You Ready for What’s Coming?
The future of finance is digital, and Egypt has a critical decision to make. Will it remain on the sidelines, or will it embrace AI and digital currencies in a way that fosters economic growth and stability? As global trends shift, businesses and policymakers must rethink their approach.
For decision-makers, the message is clear: The world is moving fast, and those who fail to adapt will be left behind.
So, what’s your take? How should Egypt approach crypto and AI in the financial sector? Let’s continue the conversation. Share your thoughts in the comments!
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