• Tue. Apr 16th, 2024

Board Calls For One Digital Currency In Central African States

Jul 25, 2022

The board members of the Bank of Central African States are calling for the regional bank to develop a digital currency for the region. Also, all nations under the central region can use it for payment. 

According to Bloomberg, the board had sent this message to the regional bank following a meeting in Cameroon. Additionally, Herve Ndoba, the chairman of the board, had signed the letter.

Board Calls For One Digital Currency For Central African States

As per reports, the committee of the Bank of Central African States is asking for financial inclusion. Also, they want the region to adopt a modern method of payment.

Therefore, they have asked the regional bank to create a uniform virtual currency for the region. Also, it asked the monetary entity to create a regulatory framework for cryptocurrencies. 

This regional bank provides services to countries in the central part of Africa. They include Equatorial Guinea, Gabon, Chad, Congo, Cameroon, and the Central African Republic.

Meanwhile, this advice is coming after the regional bank opposed the BTC adoption of CAR. Earlier this year, the CAR followed the step of El Salvador to make BTC a legal tender. 

The monetary institution said the move of the CAR does not comply with the rules of the Bank of Central African States and the Central African Monetary Union. However, the CAR is going on with its decision despite numerous criticisms.

CBDC And Crypto Adoption In Africa

Presently, several countries in the continent are embracing the idea of a CBDC. Countries such as Ghana and South Africa are considering issuing a CBDC. 

Additionally, Nigeria took the first step by releasing the eNaira last October. Unfortunately, despite its efforts, the central bank governor recently complained of low adoption. 

Also, the central bank of South Africa is considering the development of a CBDC. However, for cryptocurrency adoption to increase on a larger scale, the continent must deal with certain issues. They must solve the problem of electricity and poor internet services.

Over the years, the issue of inflation has been a persistent problem in Africa. Also, the national currency of several countries has crumbled, causing the citizens to look for how to preserve their wealth.

Meanwhile, over the years, the adoption of cryptocurrency in Africa has increased tremendously. Recently, the continent emerged among the fastest expanding crypto market globally. 

Earlier in 2022, KuCoin carried out an analysis on crypto transactions in Africa. The result unveiled that cryptocurrency transactions have increased by over 2,670%. 

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