Central African Banking Regulator Says Crypto Ban Still Effective – Featured Bitcoin News

Members of the six-nation Economic and Monetary Community of Central Africa have been informed by an African regulator that they can still ban cryptocurrency. According to the regulator, the ban is intended to maintain financial stability within the economic bloc.

COBAC will Setup a System for Identifying Crypto Transactions

A regulator from Africa, the Banking Commission of Central Africa has reminded members of an economic bloc including the Central African Republic (CAR), that its ban against cryptocurrencies is in force. The regulator’s latest warning follows the CAR’s recent decision to adopt bitcoin as the country’s “currency of reference.”

According to a Reuters report, COBAC — a regulator of the banking sector in CEMAC — believes the prohibition will ensure financial stability. The regulator said in a statement that it would also identify and report any crypto-related transactions. This was after a May 6 special meeting.

“In order to guarantee financial stability and preserve client deposits, COBAC recalled certain prohibitions related to the use of crypto-assets in CEMAC. COBAC has decided to take a number of measures aimed at setting up a system for identifying and reporting operations related to cryptocurrencies,” the regulator is reported to have said.

CAR’s Sovereignty

The Bank of Central African States warned the CAR that it would not accept bitcoin as legal tender before the warning was issued by the regulator. Regional central banks said that instead of adopting cryptocurrency the CAR should concentrate on the implementation of CEMAC’s money policies which they said will reduce poverty.

Meanwhile, the report quotes a spokesman for the CAR government, Serge Ghislain Djorie, who insisted that COBAC has not yet formally notified his country of the regulator’s renewed pushback against cryptocurrencies. Djorie stated that his government would issue a reply once the COBAC document is available to it.

However, the spokesman hinted that his government would not be forced into changing its position by outsiders. He said: “It must be understood that each state has sovereignty.”

Let us know your opinions on the story. Let us know what you think by leaving comments below.

Terence Zimwara

Terence Zimwara was a Zimbabwe Award-winning journalist and writer. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.