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African Regional Central Bank Director Calls For Digital Currency CryptoBlog

ByHazel R. Lang

Jul 25, 2022

The President of the Bank of Central African States (BCAS), Hervé Ndoba, told the board of directors of the regional central bank that it must create a common digital currency which will be used by six countries belonging to the Central African Monetary Union (CAMU). Ndoba would like BCAS to also establish a common legal framework to regulate cryptocurrencies.

Digital currency to modernize the payment structure

In a move ostensibly aimed at countering the Central African Republic’s (CAR) recent decision to embrace bitcoin, BCAS chief Hervé Ndoba has reportedly urged the institution’s board to introduce a common digital currency to its six member states. The envisioned digital currency will apparently help modernize the region’s payment structure and promote financial inclusion.

According to a Bloomberg report, Ndoba’s call came just days after BCAS concluded that the Central African law adopting bitcoin is “incompatible with the agreements and conventions governing the Central African Monetary Union and the statutes of the Bank of Central African States”.

The six member countries of CAMU are Cameroon, Chad, Equatorial Guinea, Gabon, Republic of Congo and CAR.

Regulation of cryptocurrencies

As previously reported by Bitcoin.com News, CAR became the first country in Africa and the second in the world to make bitcoin legal tender after its legislature voted to approve the proposal. El Salvador was the first to embrace cryptocurrency after lawmakers voted overwhelmingly in favor of a bill that made bitcoin legal tender.

Like its Central American counterpart, the adoption of bitcoin in the CAR has been criticized by the regional central bank and the International Monetary Fund (IMF). However, growing criticism has not stopped President Faustin-Archange Touadera’s government from proceeding with the launch of CAR’s own crypto token – the Sango coin.

In addition to the common digital currency, the BCAS chief also wants the regional central bank to establish a common legal framework to govern the use of cryptocurrencies, according to the report.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic problems of some African countries as well as how digital currencies can provide Africans with an escape route.

Image credits: Shutterstock, Pixabay, Wiki Commons

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