Central Africa bank pushes back on the country’s adoption of bitcoin

The Central African bank is cracking down on Bitcoin transactions after the Central African Republic recognized it as a legal tender without consulting its regional monetary authority.

The Bank of Central African States which already does not recognize cryptocurrencies is now prohibiting all banks from cooperating with digital currency payment platforms or recognizing them as assets.

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 restriction was necessary to maintain financial stability.

The Central African Republic’s presidency announced on April 27 that bitcoin had been approved as legal tender, making it only the second country to do so after El Salvador.

The government of the Central African Republic claims that Bitcoin adoption will assist the country’s economy to recover and flourish, as well as stabilize the country, which has been decimated by a decade-long civil war.

Opposition parties, on the other hand, criticized the administration for deciding without contacting the regional central bank, which oversees the common currency of six countries, including the Central African Republic.

The International Monetary Fund has also stated that the adoption of Bitcoin as legal tender by the Central African Republic presents several challenges.

NIairametrics