The governor of the Bank of Central African States, the umbrella monetary authority of African countries in Central region of the continent or Banque des États de l’Afrique Centrale (BEAC), has issued a scathing letter to the Central African Republic (CAR) regarding the country’s adoption of cryptocurrencies.
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In a letter addressed to the CAR Finance Minister Hervé Ndoba, governor of the BEAC Abbas Mahamat Tolli describes the “substantial negative impact” that the CAR adopting crypto will have on the monetary union of Central Africa.
The CAR passed a bill announcing its intention to adopt cryptocurrencies in April. It is no surprise that the International Monetary Fund (IMF) has already called the decision concerning. But now, the BEAC is adding fuel to the fire.
The BEAC also adds that the adoption of cryptocurrency in the CAR and the potential move away from the CFA currency is “problematic.”
The CFA currency has two near-identical forms used across former French colonies in Central and West Africa. It is pegged to the euro, which many Bitcoiners and locals dislike.
The Economic Community of Central African States, or La Communauté économique et monétaire de l’Afrique centrale (CEMAC) promotes regional economic cooperation in Central Africa. Supporting the BEAC is the “primary objective” of the CEMAC, of which Governor Tolli is the head.
The CAR is the second country to adopt Bitcoin worldwide, following El Salvador’s increasingly successful strategy to adopt the largest cryptocurrency. El Salvador has also drawn criticism from large institutions and governments from the United States to the IMF.
In Central Africa, the governor’s letter concludes with a plea to “restore strict compliance” with the rulings of the monetary union of Central Africa. Nonetheless, at the time of writing, the crypto law remains firmly in place.