CEMAC: the Central African Republic in favor of abandoning cryptocurrency

The adoption of cryptocurrency as a means of payment by the Central African Republic will finally have fizzled. After the launch on July 3, 2022 of the “local bitcoin” called “Sangocoin” by the authorities in the presence of the Head of State Faustin Archange Touadera, the country should abandon this project to remain within the Monetary Union of Central Africa (UMAC).

This is one of the strong resolutions taken during the Board of Directors of the Bank of Central African States (BEAC) and UMAC, held on July 20 and 21, 2022 in Douala, the economic metropolis. from Cameroon.

“After considering the implications of the law governing cryptocurrency in the Central African Republic on the regulatory architecture of the community in monetary and financial matters, the board of directors welcomed the expression by the Central African Republic of its commitment to the currency. and compliance with the statutes of the Bank of Central African States, the texts governing the Monetary Union and its community commitments”, indicated in a press release signed by the Chairman of the Board of Directors of the BEAC, Hervé Ndoba , also Central African Minister of Finance and Budget.

See more: 3 startups named winners of 1st Kofi Annan Award for Innovation in Africa

In other words, the Central African Republic remains in solidarity with the community statutes of UMAC prohibiting the use of a currency other than the FCFA in the six countries of the Economic and Monetary Community of Central Africa (CEMAC): Cameroon, Central African Republic, Congo , Gabon, Equatorial Guinea and Chad. This avoids in Bangui the application of resolution N° 34 of the UMAC which could have led to the exclusion of the country from the monetary authorities of the sub-region. 

According to analysts, the CEMAC countries have favored “the spirit of solidarity” to avoid “humiliation” to this brother country. This is why the council took “good note of the request by the Central African Republic for the assistance of the BEAC and the competent authorities of the community for the development of a normative framework governing cyptoactives in the CEMAC”.  

In all likelihood, the Central African Republic could at the end of the next three months give up, or at least officially freeze its cyptocurrency project, corresponding to the deadline given to this country by the International Monetary Fund (IMF) to decide on the future. relationship with Bretton Woods.  

Source: Financial Afrik