Central African States Bank board urges adoption of uniform digital currency
Crypto adoption continues to rise in the African region despite multiple challenges
Following a board meeting in Cameroon, the board of the Bank of Central African States has called for the creation of a uniform digital currency that would serve the entire region in an email to the regional financial authority.
It was reportedly signed by the head of the board, Herve Ndoba. The board also urged to develop a common and consistent framework for regulating crypto assets within the region. The bank acts as a central bank for the Economic and Monetary Community of Central Africa member states, including Cameroon, Gabon, Chad, the Republic of Congo, Equatorial Guinea, and the Central African Republic.
This move is motivated by the need for financial inclusivity and modernising payment structures in the country. The bank seems to be following in the footsteps of Nigeria, which it does not officially serve, and the move they made through launching a central bank digital currency (CBDC) in October 2021 under the name of eNaira. They are, however, not alone in this since several sub-Saharan African central banks are contemplating the idea of introducing formally issued digital currencies or CBDCs.
The move also comes as a surprise because earlier the Bank of African States was strongly opposed to and critical of the adoption of Bitcoin as a legal tender by the Central African Republic (CAR) earlier this year, stating that it is “incompatible with the agreements and conventions governing the Central Monetary Union and the Statutes of the Bank of Central African States.” Despite dissuasion from the bank and several international agencies, CAR is moving forward with its decision.