The Governor of the Bank of Central African States (BEAC) has sent a scathing letter to the Central African Republic (CAR) regarding the country’s cryptocurrency adoption.
In a letter to Central African Republic Finance Minister Hervé Ndoba, BEAC Governor Abbas Mahamat Tolli outlines the “significant negative impact” that CAR adoption of cryptocurrencies will have on the Central African Monetary Union.
The RCA passed legislation in April announcing its intention to adopt cryptocurrencies.. It is not surprising that the International Monetary Fund (IMF) has already described the decision as worrying. But now the BEAC adds fuel to the fire.
The BEAC adds that the introduction of cryptocurrencies in the CAR and the possible abandonment of the CFA currency are “problematic”..
The CFA currency has two almost identical forms used in the former French colonies of Central and West Africa.. It is pegged to the euro, which many bitcoiners and the local population do not like.
Gloire, the founder of Kiveclair, a Bitcoin Beach-inspired refugee project in neighboring Congo, told Cointelegraph that the CFA “makes whole countries dependent.” Mama Bitcoin, the first person in Senegal to accept bitcoin as payment, told Cointelegraph that “CFA is made in France and — for lack of a better word — is colonial money.”.
Naturally, the governor of BEAC is keen to stick with the CFA. Understand the threat posed by the CAR’s takeover of Bitcoin (BTC) and cryptocurrencies. The letter says:
“This law suggests that its primary objective is to establish a Central African currency outside the BEAC’s control that could compete with or supplant the legal currency in force in CEMAC and threaten monetary stability.”
The Economic and Monetary Community of Central Africa (CEMAC) promotes regional economic cooperation in Central Africa. Support for BEAC is the “primary goal” of CEMAC, of which Governor Tolli is the chairman.
Alexander GladsteinChief Strategist at the Human Rights Foundation and regular Cointelegraph contributor, informed that “the establishment of a Central African currency ‘outside the control’ of BEAC” is precisely the strategy pursued by the Central African Republic:
The letter argues that the main aim of the law appears to be to establish a Central African currency “outside the BEAC’s control” and that this move can be analyzed as a challenge to the French colonial monetary system.
— Alex Gladstein ⚡ (@gladstein) May 8, 2022
The letter claims that the law’s main objective appears to be the creation of a Central African currency “outside the BEAC’s control” and that the measure can be analyzed as a challenge to the French colonial monetary system. bingo
The Central African Republic is the second country to adopt bitcoin as a legal currency in the world, following El Salvador’s increasingly successful strategy of adopting the largest cryptocurrency. El Salvador has also been criticized by major institutions and governments, from the United States to the IMF.
in Central Africa, The governor’s letter concludes with a request to “again strictly observe” the rules of the Central African monetary union. Nonetheless, as of the writing of this article, the cryptocurrency law remains firmly in effect..
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