Board of Directors Urges Bank of Central African States to Introduce Common Digital Currency: Report

The Bank of Central African States, or Bank of African States, which serves Cameroon, the Central African Republic, Chad, Equatorial Guin...



The Bank of Central African States, or Bank of African States, which serves Cameroon, the Central African Republic, Chad, Equatorial Guinea, Gabon and the Republic of Congo, could be closer to the release of a central bank digital currency. at the request of its board of directors.

According to a Friday report from Bloomberg, the board shipped an email calling on the regional bank to introduce a digital currency in an effort to modernize payment structures and promote regional financial inclusion. The Central African Republic, or CAR, passed legislation adopting Bitcoin (BTC) as legal tender in the country in April, but did not recognize any central bank digital currencyor CBDC.

Nigeria’s central bank was one of the first in the region to launch a CBDC called eNaira in October 2021, while the Reserve Bank of South Africa continues to explore the possible use of a CBDC as part of its Project Khokha initiative. The Bank of Central African States has also criticized Nigeria accepting BTC as legal tender, calling the move “problematic” and something that could have a “substantial negative impact” on the Central African monetary union.

Sub-Saharan African countries could face significant challenges introducing cryptocurrencies and CBDCs to areas with limited access to electricity, both for transfers and for mining. According to 2020 World Bank data, CAR and Chad rank among the lowest percentages of the population with access to electricity, at 15.5% and 11.1%, respectively.

Related: Africa can create an inclusive society with blockchain, says LBank CEO

Following his adoption of Bitcoin, Central African President Faustin-Archange Touadéra announced in June that the country would be adopt a crypto initiative called Project Sango, which included a “legal crypto hub” and special economic zone in the metaverse. Africa Remains One of the Fastest Growing Digital Asset Markets in the World — Cointelegraph reported in March that crypto transactions had increased by up to 2,670% year-over-year in Ivory Coast, Senegal and Dakar.