Bank of Central African members will develop its own digital currency
The Bank of Central Africa was encouraged to develop a uniform sovereign digital currency to promote financial inclusion.
The Bank of Central African States is a central bank, which regulates the six central African countries which form the Economic and Monetary Community of Central Africa. This central bank agency also regulates the financial institutions of the Central African Republic (CAR), which recently adopted Bitcoin as legal tender.
Recently Bloomberg reported that The board of the Bank of Central African States sent an email on this matter to the Bank after a meeting in Doula, Cameroon.
Through the email, the board encouraged the Central Bank to develop its own centralized uniform digital currency to push financial inclusion and also to modernize the traditional payment systems. Board also urged to develop a regulatory framework, so that businesses can adopt & utilize centralized digital currency.
Bank of Central Africa against Bitcoin adoption
The whole world knows very well that the Central African Republic (CAR), an African country, adopted Bitcoin as currency on 27 April 2022.
On Thursday of this week, the Central Bank released a statement against the Bitcoin adoption of CAR. The regional monetary union opposes the decision of Bitcoin adoption in the payment system & said that it will not be easy to handle Bitcoin use under traditional rules & policies.
Central Bank said:
“(Bitcoin use in the legal tender) is incompatible with the agreements and conventions governing the Central African Monetary Union and the Statutes of the Bank of Central African States.”
However, the majority of the African countries did not have much friendly behavior toward cryptocurrencies but they supported the Central Bank Digital Currency (CBDCs) based initiatives. In particular Ghana, Nigeria, South Africa, and others are working on CBDC project.
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