Looks like there is a storm brewing in Central Africa between the nation’s financial regulator and the executive. On 13 May, the regional banking agency reminded the African republic about its ban on cryptocurrencies.
Last month, the country’s National Assembly passed a resolution, legalizing cryptocurrency, establishing a regulatory framework, and accepting bitcoin as legal tender.
As TronWeekly previously reported, the reason behind the adoption was to utilize bitcoin and cryptocurrency to strengthen the economy, as well as employ technology to digitize it in general.
The presidency’s announcement was hailed by the crypto community as it made only the second nation in the world next to El Salvador.
However, analysts and crypto experts were puzzled by the move in one of the world’s poorest nations where internet use is low, conflict is widespread and electricity often plays truant.
On top of that, the government has provided few details about its reasoning and questions remain unanswered about its implementation as well.
Tensions further escalated when reports began to surface that the Central Bank was neither notified nor consulted before the government announced the ambitious plan. Many in the opposition criticized the hurried move, questioning its feasibility before the top regulator finally sent out the reminder notice.
Central Africa’s govt official denied receiving an official Notice
As per sources, the Banking Commission of Central Africa [COBAC], which oversees the banking sector in the six-nation Economic and Monetary Community of Central Africa [CEMAC], said the prohibition was meant to ensure financial stability.
On May 6, the banking commission convened a special meeting to examine the impact of cryptocurrencies in the zone, it said in the statement.
Adding that, “In order to guarantee financial stability and preserve client deposits, COBAC recalled certain prohibitions related to the use of crypto-assets in CEMAC”.
But a government spokesman Serge Ghislain Djorie denied receiving any official notice from the COBAC about a crypto ban, although he said he was aware of the media reports of the apex bank statement.
“We are waiting for the document to be officially transmitted before we can respond. It must be understood that each state has sovereignty,” Djorie commented.