Egypt’s Crypto Volumes Driven by Traders Under 34

A recent market report by Localbitcoins suggests that traders or holders under the age of 34 are driving crypto volume in Egypt. This surge in Egyptian crypto transactions is evidenced by P2P data showing the crypto asset’s weekly traded volume averaging $205,000 for much of the first quarter of 2021.

Egypts premium on BTC

In addition to increased trading volumes, Egypt has also had to contend with a growing premium charged on top of the crypto-asset’s spot price. For example, on March 16, 2021, BTC was trading at $64,000 in Egypt, yet on the same day most international exchanges had the crypto asset’s value just under $57,000.

Meanwhile, a video report shared by the P2P platform tries to provide possible reasons why crypto trading has become more popular in Egypt. The report suggests that many of Egypt’s crypto traders are “looking for additional sources of income (either through) trading or hodling Bitcoin.” Additionally, the report notes that cryptocurrencies are inevitably becoming a viable alternative for those who are financially excluded, with 67% of the adult population currently unbanked.

Central Bank Renewed hostility towards Crypto

Meanwhile, this growth in Egyptian trading volume suggests traders aren’t too concerned about reports of renewed hostility from the Central Bank of Egypt (CBE) towards digital assets. In its latest warning, the CBE reiterates its previous stance on crypto assets like BTC. The CBE said:

“The Central Bank of Egypt asserts that trading within the Arab Republic of Egypt is only confined to the official currencies approved by the CBE. In this regard, the Central Bank of Egypt calls on all traders within the Egyptian market to use extreme caution and care and not to engage in any trading in these high-risk currencies.”

However, despite this “stern” warning from CBE, Egypt’s P2P data shows an overall growth in the country’s crypto trading volume. It therefore appears that as interest in cryptocurrencies grows, so will the growth in actual traded volumes.