Bitwise CEO Highlights BTC’s Potential in Egypt Crisis
Amid economic turmoil in Egypt, Hunter Horsley, CEO of Bitcoin ETF issuer Bitwise, is highlighting the role of Bitcoin (BTC) as a potential hedge against such crises. Meanwhile, Egypt secured an expanded $8 billion agreement with the International Monetary Fund (IMF) and additional financing for environmental sustainability. Additionally, the country aims to stabilize its economy amid ongoing challenges.
Bitwise CEO Emphasizes the Importance of Bitcoin
The move comes as the Egyptian pound weakened beyond previous records, falling to over 50 pounds against the US dollar. This represents a strong contrast to its previous level of around 30.85 pounds. The decision to liberalize the currency reflects Egypt’s efforts to restore investor confidence and meet the IMF’s demands for a more flexible exchange rate.
But doubts remain about the government’s commitment to long-term structural reforms, including reducing economic involvement of the state and military. Meanwhile, Bitwise CEO Hunter Horsley pointed out that in such a crisis, those who own Bitcoin are expected to be in a better financial situation.
“There are many reasons why people buy Bitcoin. This is a scenario everyone hopes to avoid. “But the reality is that those who own Bitcoin today have fared much better in dollar terms than those who don’t.” Horsley’s remarks underlined the growing interest in Bitcoin as a store of value and hedge against economic uncertainty, which the world This is a sentiment expressed by many investors across the world.
Additionally, Horsley expressed concern for Egyptian families during the financial crisis. However, he also emphasized that Egypt is now the 38th largest economy in the world in terms of GDP, up from the 31st place it achieved in 2022.
Also Read: Bitcoin and Ethereum Return as 3 Cryptocurrencies to Buy with $1,000 Surge Ahead of Halving
Central Bank of Egypt Increased Deposit Interest to Control Inflation
Amid economic difficulties, the Central Bank of Egypt (CBE) has implemented aggressive measures to curb inflation by increasing overnight lending and deposit rates to 28.25% and 27.25% respectively. The move aims to address record-high inflation levels that have plagued the country and caused hardship for millions of Egyptians. Additionally, the CBE signaled a shift towards market-determined exchange rates in line with IMF recommendations, according to a Reuters report.
Egypt’s international bonds experienced volatility, initially rising in anticipation of the IMF deal, then paring back some gains. Long-term bonds rose significantly before stabilizing; This reflects investor optimism tempered by ongoing uncertainties. Central bank governor Hassan Abdalla emphasized his determination to ensure stability amid market fluctuations, assuring the public that the bank could intervene if necessary.
Despite the challenges ahead, Egypt remains hopeful about foreign investments. These investments include a recent $35 billion deal with the United Arab Emirates (UAE). Moreover, the country believes that this foreign influx will stimulate its economy and prevent further devaluation of its currency.
Also Read: Bitcoin Vs CBDC: VanEck Advisor Advocates BTC Adoption Amid BRICS Latest Move
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