The head of the Bank of Central African States (BCAS), Herve Ndoba, has told the regional central bank’s board that it must create a common digital currency which will be used by six countries belonging to the Central African Monetary Union (CAMU). Ndoba is reportedly asking the BCAS for a similar legal framework to regulate cryptocurrencies.
The Modernization of Payment Structures with Digital Currency
In a move seemingly aimed at countering the Central African Republic (CAR)’s recent decision to embrace bitcoin, the head of the BCAS, Herve Ndoba, has reportedly urged the institution’s board to introduce a common digital currency for its six member states. The envisioned digital currency will ostensibly help modernize the region’s payment structure and promote financial inclusion.
According to a Bloomberg report, Ndoba’s call came just days after the BCAS concluded that the CAR’s law adopting bitcoin is “incompatible with the agreements and conventions governing the Central African Monetary Union and the Statutes of the Bank of Central African States.”
Cameroon (Chad), Equatorial Guinea and Gabon are the six member countries of the CAMU.
Regulation of cryptocurrencies
Bitcoin.com News reported that the CAR was the first African country and second worldwide to legalize bitcoin after the legislature approved the bill. After lawmakers approved the bill making bitcoin legal tender, El Salvador adopted the cryptocurrency.
Similarly to its Central American counterpart, the CAR’s bitcoin adoption has been criticized by the regional central bank and by the International Monetary Fund (IMF). However, the mounting criticism has not stopped President Faustin-Archange Touadera’s government from proceeding with the launch of the CAR’s own crypto token — the Sango coin.
According to the report, in addition to the creation of the common digital currency the BCAS chief also wanted the regional central bank establish a common legal framework that governs the use cryptocurrency.
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