The governor of the Bank of Central African States (Banque des États de l’Afrique Centrale, BEAC), Abbas Mahamat Tolli sent out a letter to the Central African Republic (CAR) concerning the country’s adoption of Bitcoin.
The letter addressed to the Finance Minister of CAR, Hervé Ndoba and Abbas Tolli explained the “substantial negative impact” that the CAR’s adoption of bitcoin will have on the monetary union of Central Africa.
CAR became the first African country to adopt Bitcoin last month.
The International Monetary Fund (IMF) has already criticized that decision as concerning, and now, the BEAC is aggravating the situation even more. Moreover, the BEAC also says that the adoption of cryptocurrency in the CAR and the potential move away from the CFA currency will be “problematic”.
There are two similar forms of CFA currency, used in the previous French colonies in Central and West Africa. It is pegged to the euro, which is disliked by many bitcoiners and even locals.
The founder of KiveClear, a Bitcoin Beach-inspired refugee project in neighboring Congo, Gloire said that the CFA “makes the whole country dependent”. Mama Bitcoin, the first Senegalese person to accept bitcoin as a payment, stated that “the CFA is made in France and is – for lack of a better word, colonial money.”
The Governor of the BEAC is keen to talk to the CFA. He knows the threat that the CAR adopting Bitcoin (BTC) and cryptocurrencies brings.
The Letter States:
“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 CEMAC (La Communauté économique et monétaire de l’Afrique centrale) promotes regional economic cooperation in Central Africa. Supporting the BEAC is the “primary objective” of the CEMAC, and Governor Tolli is the head of that.
The Governor’s letter concludes with a plea to “restore strict compliance” with the orders from the monetary union of Central Africa.
