The Bank of Central African States calls on the Central African Republic to cancel the legalization of Bitcoin – Bits Media

The Government of the Central African Republic has received a request from the Bank of Central African States (BEAC) repeal the law on accepting Bitcoin as a means of payment.

At the end of April, the Central African Republic became the second country, legitimizing Bitcoin, following example of El Salvador. However, the decision raised eyebrows among regulators.. Last week the International Monetary Fund (IMF) criticized the actions of the CAR authorities, warning, that this could destroy the country's economy. This week BEAC sent a letter to the CAR Minister of Finance, expressing concerns, what, being legalized in the republic, Bitcoin will compete with the Central African franc.

This could have a negative impact on the financial stability of the other five African states., members of the Economic Community of Central African Countries (ECOTIME) and using the same fiat currency: Gabon, Cameroon, Republic of the Congo, Chad and Equatorial Guinea. BEAC called on the CAR government to avoid politics, which will contribute to the fluctuations of the Central African franc. The regulator is concerned, that with the help of cryptocurrencies it will be easier for criminals to launder money, finance terrorism and social unrest in the region. FROM 2012 armed conflict between the government and rebels continues in the CAR. Cameroon fights separatists, and Chad with Islamic extremists.

Financial Capital economist Willy Delort Heubo (Willy Delort Heubo) noted, that over the past three years the number of transactions using Bitcoin in the region has quadrupled. He considers, that the decision of the CAR authorities to accept BTC as legal tender violates the pact, signed by countries in the region to protect financial security and economic development. According to Heubo, Bitcoin transactions will now be even more difficult to control, especially when the regulator has already given the green light to Bitcoin.

Economic and Monetary Community of Central Africa (CEMAC) called on BEAC to implement monetary policy, which would be aimed at reducing poverty. Economist and consultant CEMAC David Kunde (David Kunde) warned, what, if the Central African Republic does not repeal the law on the legalization of Bitcoin, sanctions may be applied to the state.

Recall, that the Central Bank of Uganda recently warned users against investing in crypto assets. At the same time, the regulator is studying the risks and benefits of launching its own digital currency..