The head of the Bank of Central African States (BCAS), Hervé Ndoba, told the regional central bank’s board that he should create a common digital currency to be used by the six countries that make up the Central African Monetary Union (CAMU). Ndoba reportedly wants BCAS to also establish a common legal framework for regulating cryptocurrencies.
Digital currency to modernize the payment structure
Seemingly aimed at countering the Central African Republic’s (CAR) recent decision to adopt bitcoin, BCAS chief Hervé Ndoba reportedly urged the institution’s board to introduce a single digital currency for six member states. The envisioned digital currency will ostensibly help modernize the payment structure in the region and promote financial inclusion.
According to Bloomberg reportNdoba’s call came just days after BCAS concluded that the CAR’s bitcoin acceptance law was “inconsistent with the agreements and conventions governing the Central African Monetary Union and the Statute of the Bank of Central African States.”
The six countries that are members of CAMU include Cameroon, Chad, Equatorial Guinea, Gabon, the Republic of the Congo and the Central African Republic.
Regulation of cryptocurrencies
As Bitcoin.com News previously reported, the CAR became the first country in Africa and the second in the world to make bitcoin legal tender after its legislature voted to approve the proposal. El Salvador was the first to adopt cryptocurrency after lawmakers voted overwhelmingly in favor of a bill that made bitcoin legal tender.
As with its Central American counterpart, bitcoin adoption in the CAR has been criticized by the regional central bank and the International Monetary Fund (IMF). However, the growing criticism has not stopped the government of President Faustin-Archange Touadéra from launching its own CAR crypto token, the Sango coin.
The report says that in addition to a common digital currency, the head of BCAS also wants the regional central bank to establish a common legal framework to regulate the use of cryptocurrencies.
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