As inflation is through the roof, the Central Bank of Sudan is warning citizens against using crypto

The Central Bank of Sudan (CBOS) warned the country’s citizens against dealing with “all types of cryptocurrencies” due to “the high risks” they pose. This announcement came in response to rising interest in digital assets among the population of the country, which has been facing triple-digit inflation since the 2021 military coup.

On March 27, the Sudan News Agency (SUNA) released a brief announcement from the CBOS explaining that citizens are discouraged from using cryptocurrencies of any kind due to high risks that include “financial crime, electronic piracy and risk of depreciation”.

The CBOS also cited legal risks as cryptocurrencies are not classified as money “or even private money and property” under Sudanese law. The central bank admitted that it has noticed a surge in crypto action on social media lately.

As Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, written down in a tweet, a formal ban on crypto could already be in the works. According to analysis by law firm Freeman Law, this is not the case with the current Sudanese laws on electronic payments, enacted in 2007 Home page cryptocurrencies.

The rising interest in crypto, which is unsettling the Sudanese authorities, can be explained by the ongoing economic crisis. According to the country’s Central Bureau of Statistics, Sudan’s inflation rate averaged 359.09% in 2021, up from 163.26% in 2020. In February 2022, it slowed to 258.40%.