Bank of Central African States Warns CAR Adopting Bitcoin Could Compete with Central African CFA Franc

A letter from the bank’s Governor to the CAR’s finance minister and made public recently said the move suggests the CAR wants a currency beyond the bank’s control.

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Headquarters of the BEAC (Banque des Etats de l’Afrique Centrale), Bank of Central African States, in Yaounde, Cameroon

The Cameroon-headquartered Bank of Central African States (BEAC) has urged the Central African Republic (CAR) to annul a law it passed in late April 2022 that made the cryptocurrency, Bitcoin, legal tender.

The bank warned in a letter that the move breached its rules and could affect monetary stability in the region.

BEAC said the CAR’s decision to make Bitcoin legal tender could compete with the Central African Franc (CFA), the region’s France-backed currency.

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SEE ALSO: Mara Raises $23 Million to Advise Central African Republic on Crypto Adoption

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A letter from the bank’s Governor to the CAR’s finance minister and made public recently said the move suggests the CAR wants a currency beyond the bank’s control.

The regional bank’s letter goes on to suggest that using the cryptocurrency could upset monetary stability in the six-member Central African Economic and Monetary Community (CEMAC).

CEMAC members use the CFA Franc as currency a monetary union. The member states include:

  • the Central African Republic (CAR)
  • Cameroon
  • Chad
  • Gabon
  • Equatorial Guinea
  • Republic of The Congo

The bank urged the CAR to comply with CEMAC in promoting economic and financial cooperation and avoiding policies that may lead to monetary fluctuations. The BEAC has also expressed concern that cryptocurrencies could make it easier for criminals to launder money and sponsor terrorism or rebellions in the region.

The Central African Bank said, instead of adopting Bitcoin, the CAR should implement CEMAC monetary policies to reduce endemic poverty.

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RECOMMENDED READING: 3 Francophone African Countries Planning to Enable Crypto Payments via Telegram ($TON)

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