Bitcoin and its Sister Coins: Why are Governments Wary of them?

“Can anyone make cryptocurrencies? I don’t know. What’s its circulation mechanism? And who guarantees them? I don’t know.”

That’s how a pedestrian says on the street in Cairo, echoing questions that resonate with many people. Yet, what if governments had made these coins? This could easily have ended up the other way round.

In general, most countries deal with popular digital currencies, such as Bitcoin and Ethereum, with an aggressive rejection.

Only El Salvador recognised bitcoin as an official currency, and the United States and Canada considered it legal. The rest of the countries either imposed restrictions on its purchase and sale, such as Vietnam and Georgia, developed regulations to control it, such as Britain and the European Union, or decisively prohibited those currencies from being dealt with, such as China and Bangladesh.

Most of the Arab States belong to the latter category, including Algeria, Iraq, Qatar, Oman, Morocco and Tunisia. To that end, Egypt has not only prohibited digital currencies but has also banned them by a Fatwa (religious order).