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 reportedly wants the BCAS to establish a common legal framework for regulating cryptocurrencies as well.
Digital Currency to Modernize Payment Structure
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.”
The six countries that are members of the CAMU include Cameroon, Chad, Equatorial Guinea, Gabon, the Republic of Congo, and the CAR.
Regulation of Cryptocurrencies
As previously reported by Bitcoin.com News, the CAR became the first country in Africa and the second in the world to make bitcoin legal tender after its legislature voted to approve the proposal. El Salvador was the first to adopt the cryptocurrency after lawmakers voted overwhelmingly in favor of a bill that made bitcoin legal tender.
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.
In addition to the common digital currency, the BCAS head also wants the regional central bank to establish a common legal framework to govern the use of cryptocurrencies, the report said.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.