The Governor of the Bank of Central African States (Banque des Etats de l’Afrique Centrale), BEAC, has sent a scathing note to the Central African Republic (“CAR”) regarding the country’s adoption of cryptocurrencies.
The Governor of the BEAC Abbas Mahamat Tolli, in a letter addressed directly to Herve Ndoba the Finance Minister of CAR, outlines the “substantial adverse impact” that crypto adoption will have on Central Africa’s monetary union.
CAR approved a bill that announced its intention to adopt cryptocurrency in April. It’s not surprising that the International Monetary Fund has already criticized the decision. The BEAC has now added fuel to the flames.
The BEAC adds that cryptocurrency adoption in the CAR, and possible withdrawal from CFA currency, is “problematic”.
Two very similar forms of the CFA currency are used in former French colonies in Central Africa and West Africa. It is tied to the Euro, which locals and Bitcoiners dislike.
Gloire, founder of Kiveclair (a Bitcoin Beach-inspired refugee program in neighboring Congo), told Cointelegraph the CFA “makes whole nations dependent.” Mama Bitcoin, who was the first to accept Bitcoin payments in Senegal, said that “the CFA was made in France and is –for want of a better term, colonial currency.”
The Governor of the BEAC wants to keep the CFA. He is aware of the danger that Bitcoin (BTC), and other cryptocurrencies pose to the CAR. The letter stated:
“This law indicates that it has as its primary objective to create a Central African currency that is not under the control of BEAC. It could compete with the CEMAC legal currency or displace it. This would jeopardize monetary stability.”
The CEMAC (La Communaute economique et monetaire de l’Afrique centrale) is the Economic Community of Central African States. The CEMAC promotes economic cooperation in Central Africa. The “primary objective” for the CEMAC, whose head is Governor Tolli, is to support the BEAC.
Related: Crypto users in Africa increased by 2,500% in 2021: Report
Alex Gladstein is the chief strategy officer of the Human Rights Foundation. He is a regular contributor to Cointelegraph. Gladstein shared that “establishing Central African currencies ‘beyond control’ of the BEAC was precisely the strategy the CAR is using:
The letter claims that the law’s primary objective is to establish a Central African currency “beyond control” of the BEAC. It also suggests that the move could be considered a challenge to France’s colonial currency system. Bingo
— Alex Gladstein (@gladstein) May 8, 2022
After El Salvador’s successful strategy to adopt Bitcoin, the CAR is now the second country to accept Bitcoin. El Salvador also received criticism from governments and large institutions, including the United Stat and the IMF.
The Governor of Central Africa concludes his letter with a plea for “restore strict conformity” to the rulings by the Central African Monetary Union. However, the crypto law is still in force at the time this article was written.
Eileen Wilson –Technology and Energy
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