Herve Ndoba, the head of the Bank of Central African States (BCAS), is said to have asked the board of the organization to develop a unified digital currency for its six member states in an apparent attempt to challenge the Central African Republic’s (CAR) recent decision to accept bitcoin.
The proposed digital currency is intended to support financial inclusion and enhance the region’s payment system.
Ndoba’s request came shortly after the BCAS said that the CAR’s law approving bitcoin is “incompatible with the commitments and conventions regulating the Central African Monetary Union and the Statutes of the Bank of Central African States,” according to a recent report.
Cameroon, Equatorial Guinea, Chad, Gabon, the CAR, and the Republic of Congo are the six nations that make up the CAMU.
After passing the measure, the CAR became the second nation in the world and the first in Africa to recognize bitcoin as legal cash, as seen in a previous report.
The cryptocurrency was initially used in El Salvador, where lawmakers passed a bill making bitcoin legal tender with a resounding majority.
Similar to its Central American counterpart, the IMF and the regional central bank have both opposed the CAR’s acceptance of bitcoin.
The introduction of the Central African Republic’s own cryptocurrency token, the Sango coin, has nevertheless continued despite the growing criticism, according to President Faustin-Archange Touadera’s administration.
The BCAS chief wants the regional central bank to create a shared legal framework to regulate the usage of cryptocurrencies in addition to a common digital currency, according to the report.
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