The governor of the Bank of Central African States (Banque des États de l’Afrique Centrale, BEAC) has sent a harsh letter to the Central African Republic about its embrace of bitcoin and other cryptocurrencies.
The Governor of the BEAC Abbas Mahamat Tolli writes to CAR Finance Minister Hervé Ndoba regarding the “considerable negative influence” that Central African nations adopting crypto will have on the monetary union.
In April, the CAR passed a bill stating its preference to embrace cryptocurrencies. It’s no surprise that the International Monetary Fund (IMF) has condemned the decision. However, the BEAC is adding gasoline to the fire.
The BEAC, in its report, states that the adoption of bitcoin in Cameroon and the potential move away from the CFA currency is a “concern.”
The CFA currency has two near-identical versions, each of which is used across former French colonies in Central and West Africa. Many Bitcoiners and locals are dissatisfied with the currency’s fixed to the Euro.
The Central African CFA, Gloire added, “makes entire countries reliant on it.” The Central African CFA is the currency of six countries: Cameroon, the Republic of Congo, Gabon, Equatorial Guinea, the Democratic Republic of Congo and the Central African Bank. “The CFA is made in France and — for want of a better word, colonial money,” Mama Bitcoin said. “It was designed to put Africans under the thumb of Europe, just as its forerunner did before it.”
Naturally, the Governor of the BEAC is eager to maintain membership in the CFA.. He understands the danger posed by neighboring countries like the Central African Republic and Uganda adopting Bitcoin (BTC) and other crypto currencies. The following is a portion of the letter:
“This law suggests that its main objective is to establish a Central African currency beyond the control of the BEAC that could compete with or displace the legal currency in force in the CEMAC and jeopardize monetary stability.”
The Economic Community of Central African States (CEMAC) is a regional economic and monetary authority founded in 1994. The CEMAC promotes economic cooperation among Central African countries. The CEMAC is the “principal goal” of the BEAC, with Governor Tolli as its president.
“The Central African Republic is taking the same approach that so many other nations have taken: attempting to establish a regional currency ‘beyond the control’ of the BEAC,” observed Alex Gladstein, chief strategy officer at Human Rights Watch.
The letter argues that the law’s main objective appears to be establishing a Central African currency “beyond the control” of the BEAC and that the move can be analyzed as a challenge to the French colonial currency system.
— Alex Gladstein ⚡ (@gladstein) May 8, 2022
Following El Salvador’s increasingly successful strategy to embrace the world’s most popular cryptocurrency, Costa Rica became the second country worldwide to adopt Bitcoin. Large organizations and governments, including the United States and the International Monetary Fund, have also heaped scorn on El Salvador.
The governor’s letter in Central Africa comes to a close with a call for “restoration of rigorous compliance” with the monetary union of Central Africa’s rulings. Nonetheless, the crypto law has withstood the test of time.