• Sun. Aug 14th, 2022

Board of Directors Urges Bank of Central African States to Introduce Common Digital Currency: Report

ByHazel R. Lang

Jul 22, 2022

The Bank of Central African States, or Bank of African States, which serves Cameroon, the Central African Republic, Chad, Equatorial Guinea, Gabon and the Republic of Congo, could be closer to the release of a central bank digital currency. at the request of its board of directors.

According to a Friday report by Bloomberg, the board sent an email calling on the regional bank to introduce a digital currency in a bid to modernize payment structures and promote regional financial inclusion. The Central African Republic, or CAR, passed legislation adopting Bitcoin (BTC) as legal tender in the country in April, but did not recognize a central bank digital currency, or CBDC.

The Central Bank of Nigeria was one of the first in the region to launch a CBDC called eNaira in October 2021, while the Reserve Bank of South Africa continues to explore the possible use of a CBDC as part of of its Project Khokha initiative. The Bank of Central African States has also criticized Nigeria’s acceptance of BTC as legal tender, calling the move “problematic” and something that could have a “substantial negative impact” on Nigeria’s monetary union. central Africa.

Sub-Saharan African countries could face significant challenges introducing cryptocurrencies and CBDCs to areas with limited access to electricity, both for transfers and for mining. According to 2020 data from the World Bank, CAR and Chad both rank among the lowest percentages of the population with access to electricity, at 15.5% and 11.1%, respectively.

Related: Africa can create an inclusive society with blockchain, says LBank CEO

Following Bitcoin’s adoption, CAR President Faustin-Archange Touadéra announced in June that the country would adopt a crypto initiative called the Sango Project, which included a “legal crypto hub” and a special economic zone. in the metaverse. Africa remains one of the fastest growing digital asset markets in the world – Cointelegraph reported in March that crypto transactions grew by up to 2,670% year-over-year in Côte d’Ivoire. Ivoire, Senegal and Dakar.

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