The Central African Republic’s (CAR) proposal to launch a national cryptocurrency supported by bitcoin has been authorized by the Bank of Central African States (BEAC), which also pledged to manage the initiative.
The choice was reached following the Ministerial Committee of the Central African Monetary Union (UMAC) meeting in July 2022 in Douala, Cameroon, according to a news website.
UMAC guaranteed BEAC of its support for the project in a statement, stating that after analyzing the effects of the Central African Republic’s cryptocurrency law on the community’s monetary and financial regulatory architecture, the Board of Directors welcomed the CAR’s expression of its commitment to the single currency and respect for the statutes of the Bank of Central African States, the texts governing the monetary union, and other relevant legal documents.
According to BEAC, it is unlawful for CEMAC institutions and their technology partners to swap, convert, settle, or cover foreign currency or CFA francs transactions using cryptocurrencies or having a connection to them when providing payment services.
BEAC petitioned CAR in May 2022 to overturn a statute it approved in late April 2022 that declared Bitcoin to be legal cash.
The Central African Franc (CFA), the region’s France-backed currency, may face competition as a result of CAR’s decision to declare Bitcoin legal tender.
Following guarantees from the Central African Republic, this most recent declaration from BEAC signed by the organization’s minister of finance and budget seems to have been warmly received.
The Central African Republic requested assistance from BEAC and the relevant community authorities for the development of a regulatory framework governing crypto assets in the Economic and Monetary Community of Central Africa, according to BEAC, and the organization’s board of directors has taken note of this request (CEMAC).
The CFA Franc, which is issued by BEAC and used as the primary currency in seven countries in Central Africa that speak French, includes:
- The Congo Republic
- Equatorial Guinea
- Central Africa Republic (CAR)
The board’s most recent announcement was made at a time when BEAC has also been debating whether to introduce a central bank digital currency (CBDC).
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