A system and method for automatically selecting an encryption, or ciphering, algorithm in a cellular communication network is disclosed. A cellular communication network includes a Base Transceiver Station (BTS) connected to a Base Station Controller (BSC), which is connected to a Mobile services Switching Center (MSC). The BTS is adapted to implement one of at least two different encryption algorithms. The BSC includes a tabular database containing Mobile Country Codes (MCCs) and associated codes corresponding to the allowable encryption algorithm for the MCC. When the BTS is initialized, the BSC's processor retrieves from the tabular database the encryption algorithm code that corresponds to the country in which the BTS resides. This code is transmitted to the BTS, which selects an encryption algorithm based on the value of this code.