The Bank of Central African States Governor, or Banque des Etats de l’Afrique Centrale, 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 CAR Finance Minister describes 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. The International Monetary Fund (IMF), which has already criticized the decision, is not surprising. 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 that it is colonial money.
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 Economic Community of Central African States, or La Communaute economique et monetaire de l’Afrique centrale (CEMAC) promotes regional 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 the CAR is “establishing a Central African currency “beyond control” of the BEAC.
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 of adopting the largest cryptocurrency, the CAR is now the second country to accept Bitcoin. El Salvador also received criticism from governments and large institutions from the United States, including the IMF.
The letter from the governor of Central Africa ends 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.