A Couple of days ago, I was doing my regular shopping at a well-known hypermarket, and the cashier complained that no one had change. I thought this might have something to do with high inflation rates. Currently, the purchasing power of a 200-Egyptian-pound banknote (EGP) is weak. I checked the Central Bank of Egypt (CBE) website and found that the EGP 200 note has the highest circulation among other banknotes.

High inflation rates and currency devaluation can cause problems in cash transactions. For instance, you might need a medium or large suitcase full of money to buy a small apartment. In the future, you might need a handbag instead of a wallet to pay your monthly bills. And I am not exaggerating. You can find videos online about the Iraqi Dinar and Lebanese Lira in cash transitions. We may soon witness the release of a new banknote such as EGP 500.

The solution should be digital. Egypt is making good progress in terms of financial inclusion, which has many positive economic impacts, especially in narrowing down the size of the informal sector.

The increasing number of smartphone users in Egypt has supported the government’s efforts towards digital transformation and a less-cash society. Digital financial services went viral thanks to user-friendly mobile applications. This includes not only Vodafone cash and InstaPay but also applications developed and released by different private and state-owned banks. The CBE has also made a good decision by enabling transfers of remittances from Egyptians abroad through InstaPay soon. This will control the parallel currency market indeed. Either putting your money in a handbag or using a digital wallet, small leather wallets will not be needed in the future.

But, are Egyptians ready to deal with a cashless economy? Do they have enough digital financial knowledge? Are they aware of the basics of cybersecurity? Unfortunately, the answer is no. Most Egyptians, particularly older generations, lack financial and cybersecurity literacy. And that is why awareness campaigns are strongly needed.

I have always believed that students should learn economic and financial principles at an earlier stage than high school. Now, I think primary school kids should receive intensive courses on digital financial security. Who knows, maybe within a couple of years, they will not carry cash as pocket money. Instead, they might use digital wallets to buy their snacks with a QR code.