Dr.  Ibrahim Mustafa

Chairman of the Investment Committee

In March 2018, during my visit to Miami in the southern United States, and then to Dubai, I was struck by the connection between the two cities regarding advancements in blockchain and cryptocurrency technologies. The visit was part of a study into Egypt’s potential entry into this field and its potential to benefit from the tremendous developments in digital money, electronic payments, and financial technology. The goal was to present the opportunities and challenges to decision-makers. At the time, the opportunities seemed far greater than the challenges, especially in a world that needs to exploit all available tools, both publicly and privately.

Amid geopolitical tensions affecting international financial transaction systems, some countries find themselves besieged by trade and financial sanctions that prevent them from transacting through formal systems, such as SWIFT. Meanwhile, the world is increasingly using cryptocurrencies, whose value is increasing over time.

missed economic opportunities

In 2018, when we first started talking about cryptocurrencies, Bitcoin’s value was between $10,000 and $20,000 per unit. Today, it has surpassed $100,000, even though it has experienced some fluctuations and is now hovering around $90,000. Imagine the gains Egypt could have made if it had held a reserve of these currencies or become a global trading center for them!

Egypt could have become an international transit point for cryptocurrency transactions between East and West, providing a huge source of revenue from transaction fees alone. Had this opportunity been seized at the right time, we would be in a different economic situation today, without the need to borrow from the International Monetary Fund or increase our external debt to secure dollars. This mechanism alone would have generated dollar resources far exceeding Egypt’s total external debt, enabling the financing of development projects and the building of massive reserves for future generations.

Steps taken… and what has not been done

What has been implemented so far is limited to establishing a robust blockchain-based database in the Administrative Capital, a first step we recommended in 2018, paving the way for a future entry into the world of cryptocurrencies. Actual steps toward harnessing this massive source of dollar income remain limited, even as many countries—both regional and international—have embraced cryptocurrencies as a means of payment and investment.

Today, cryptocurrencies are used to conclude massive trade deals involving oil, coal, goods, services, and even e-commerce. The technology has even advanced to the point where automated teller machines (ATMs) are available for withdrawing funds from digital wallets, along with the ability to issue encrypted credit cards for purchases. I first saw this technology in Dubai in 2018, while we have yet to take a similar step in Egypt.

Dubai and leadership in attracting investments

It’s no surprise today to see Russian, Ukrainian, and other funds flowing into Dubai, where they are being invested in real estate and financial activities, far removed from traditional systems that impose strict restrictions. In Dubai, everyone benefits—a win-win situation, while elsewhere, wait-and-see policies may lead to missed opportunities to benefit from these major financial shifts.

What do we need today?

Geopolitical changes create huge financial opportunities, but exploiting them requires strategic vision and the ability to ride the wave at the right time. In the world of finance and investment, those who understand the rules of the game and use them skillfully reap the lion’s share, while those who wait until the risks subside find themselves facing limited opportunities.

Egypt has many opportunities outside of debt, but capitalizing on them requires bold decision-making and fortified with effective mechanisms that support the economy. Technological tools, such as financial technology (FinTech), can generate significant dollar resources if used intelligently, whether through production, exports, and investment, or by adopting new financial solutions such as cryptocurrencies and blockchain.

Conclusion: Ride the wave or wait?

Timing is the most important factor in making successful investment decisions. Those who catch the wave early achieve faster results and greater gains, while those who wait until conditions stabilize may find themselves with fewer opportunities and limited returns.

Today, even the United States, which controls the global financial system, has begun to adopt cryptocurrencies as part of its reserves, while other countries, in Europe and Asia, were pioneers. The question that arises is:

Will we be more daring in the future, or will we have to wait a long time before we catch up with these economic transformations?

*The opinions and ideas expressed in this article express the author’s personal viewpoint and do not necessarily reflect the positions or policies of the Arab Federation for Digital Economy.