Central African Bank reprimands CAR for accepting bitcoin

The Governor of the Central African State Bank (BEAC) sent an alarming letter to the Central African Republic (CAR) regarding the country ‘s acceptance of cryptocurrencies.

In a letter to CAR Finance Minister Hervé Ndoba, BEAC Governor Abbas Mahamat Tolli describes the “substantial negative impact” of the adoption of cryptocurrencies by CAR on CAR’s monetary union. ‘ Central Africa.

The CAR passed a bill announcing its intention to adopt cryptocurrencies in April. Not surprisingly, the International Monetary Fund (IMF) is already a matter of concern. But today, the BEAC is throwing oil on the fire.

BEAC says the adoption of cryptocurrencies in the CAR and the potential abandonment of CFA currency are “problematic”. »

The currency of the CFA, used throughout the former French colonies of Central and West Africa, has almost identical forms. It is pegged to the euro, which displeases many Bitcoiners and locals.

Gloire, founder of Kiveclair, a refugee project inspired by Bitcoin Beach in nearby Congo, told Cointelegraph that the CFA “makes countries full of addiction. Mama Bitcoin, the first person in Senegal to accept bitcoin as payment, told Cointelegraph “that the CFA is made in France and is a colonial currency, due to the lack of anything better. »

Of course, the governor of the BEAC wants to comply with the CFA. He understands the threat of CAR adoption on bitcoin (BTC) and cryptocurrencies. The letter states:

“This law suggests that its primary objective is to establish a Central African currency over which the BEAC has no control, which could compete with or displace the legal currency in force in the CEMAC and jeopardize monetary stability. . »

CEMAC (Central African Economic and Monetary Community) is the Central African Economic Community. CEMAC promotes regional economic cooperation in Central Africa. CEMAC’s “main objective” is to support the BEAC, led by Governor Tolli.

Read also: Cryptocurrency users in Africa increased by 2,500% in 2021: Report

Alex Gladstein, director of strategy at the Human Rights Foundation and a regular contributor to Cointelegraph, said that “the establishment of the Central African currency ‘beyond the control’ of the BEAC is the strategy precisely adopted by the CAR”:

The letter argues that the main purpose of the law appears to be to establish the Central African currency “beyond the control” of the BEAC and that the transfer can be analyzed as a challenge to the French colonial currency system.

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– Alex Gladstein ⚡ (@gladstein) May 8, 2022

The letter confirms that the main purpose of the law seems to be to establish the Central African currency “outside the control” of the BEAC and that this initiative can be analyzed as a challenge to the French colonial monetary system.
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– Alex Gladstein ⚡ (@gladstein) May 8, 2022

CAR is the second country to adopt bitcoin in the world, following El Salvador’s increasingly successful strategy to adopt the world’s largest cryptocurrency. El Salvador has also drawn criticism from major institutions and governments, from the United States to the IMF.

In Central Africa, the Governor’s letter ends with a call for “restoring strict compliance” with the rules of the Central African Monetary Union. However, as of this writing, cryptocurrency law is still firmly in place.