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Central African bank scolds CAR for Bitcoin adoption

The governor of the Bank of Central African States (Banque des États de l’Afrique Centrale, BEAC) has issued a damning letter to the Central African Republic (CAR) regarding the country’s cryptocurrency adoption.

In a letter to CAR Finance Minister Hervé Ndoba, BEAC Governor Abbas Mahamat Tolli describes the “significant negative impact” that CAR adoption of crypto will have on the Central African Monetary Union.

The CAR passed legislation in April announcing its intention to adopt cryptocurrencies. No wonder the International Monetary Fund (IMF) has already appealed the decision. But now the BEAC is adding fuel to the fire.

The BEAC also adds that the introduction of the cryptocurrency in the CAR and the possible move away from the CFA currency are “problematic”.

The CFA currency has two nearly identical forms used in the former French colonies in Central and West Africa. It is pegged to the euro, which many bitcoiners and locals dislike.

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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 “the CFA is made in France and is — for lack of a better word — colonial money.”

Of course, the governor of BEAC is anxious to stick with the CFA. He understands the threat posed by the CAR’s takeover of Bitcoin (BTC) and cryptocurrencies. The letter states:

“This law suggests that its primary objective is to establish a Central African currency outside the control of BEAC that could compete with or supplant the legal currency governed by CEMAC and threaten monetary stability.”

The CEMAC (La Communauté économique et monétaire de l’Afrique centrale) is the economic community of the Central African states. CEMAC promotes regional economic cooperation in Central Africa. Supporting BEAC is the “primary goal” of CEMAC, which is headed by Governor Tolli.

Related: Crypto Users in Africa Up 2,500% in 2021: Report

Alex Gladstein, chief strategy officer at the Human Rights Foundation and a regular contributor to Cointelegraph, shared that “the launch of a Central African currency ‘outside the control’ of the BEAC is precisely the strategy that the Central African Republic is pursuing:

The Central African Republic is the second country to adopt Bitcoin globally, following El Salvador’s increasingly successful strategy of launching the world’s 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 ends with a request that the regulations of the Central African monetary union be “strictly observed again”. Nonetheless, as of the writing of this article, the crypto law remains firmly in place.