The Central Republic of Africa’s monetary authority placed a ban on cryptocurrency. The Central Bank’s decision was imposed and announced on Friday, just weeks after the Central Africa Republic (CAR) Government declared Bitcoin to be legal tender alongside the CFA franc, and allowed the use of cryptocurrencies. In the press statement that was released yesterday, the regulator stated;
“It is forbidden for taxable institutions and their technical partners in the context of payment services to exchange or convert, settle or hedge in foreign currency or CFA franc transactions relating to or related to cryptocurrencies.”
“The treatment of a cryptocurrency or virtual currency as a means of valuing the assets, liabilities or off-balance sheets of taxable institutions is prohibited.”
The Banking Commission of Central Africa (COBAC) is the Central Bank that serves the Central African Economic and Monetary Community (CEMAC). CEMAC comprises six country members, such as the Central African Republic, Cameroon, Chad, Gabon, Equatorial Guinea, and the Republic of the Congo.
The Central Bank declared that the ban was put in place to ensure financial stability. The crypto ban came after The Central Bank conducted a special meeting on 6th May to investigate the impact of cryptocurrencies in the region.
“In order to guarantee financial stability and preserve client deposits, COBAC recalled certain prohibitions related to the use of crypto-assets in CEMAC,” the financial regulator said.
“COBAC has decided to take a number of measures to set up a system for identifying and reporting operations related to cryptocurrencies,” The Central Bank further mentioned.
The regulator stated that the ban includes the holding of cryptos of any kind, the exchange, conversion, or settlement of transactions associated with cryptocurrencies, and a medium to provide access to blockchain-based goods or services such as assets or liabilities.
However, Serge Ghislain Djorie, the Government spokesman, said that the Central African Republic had not received any official notice from the COBAC about a crypto ban. But he acknowledged that he had seen the news in the press and on social media.
“We are waiting for the document to be officially transmitted before we can respond. It must be understood that each state has sovereignty,” Djorie stated.