The Central African Banking Commission (COBAC), which is the institution by which the Common Central Bank of CEMAC countries (BEAC) regulates banking activities, has taken the first step toward combating the Central African Republic ’s adoption of crypto-currencies as a trading instrument alongside the CFA franc, which is the official currency of this sub-region. The CFA franc is the currency that is used throughout the CEMAC countries.

“In the context of payment services, it is forbidden for subject institutions and their technical partners to exchange or convert, settle or cover in currency or FCFA any transactions relating to cryptocurrencies or having a link with them. This prohibition applies to all exchanges, conversions, and coverings.” ci,” a statement from the bank shared on social networks on Friday, May 13, read. 

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The other types of transactions that are prohibited include those that include guarantees, as well as those that involve the recognition of crypto-assets as counterparties in accounting terms. 

Because of this decision, it will be more difficult to apply the law on cryptocurrencies that was recently adopted by the Central African Republic. That law acknowledges the use of bitcoins and authorizes their convertibility to the currency that is legal tender on its territory. 

The choice that was made by the Central African Republic ushers in a crisis for the Central African monetary union that has never been seen before. This is especially true when considering that the presidency of the body as well as the board of directors of the Central Bank are currently held by the Central African Republic. 

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However, there is no shortage of justifications for the government of Faustin-Archange Touadéra to adopt Bitcoin in the country. Within this particular sub-region, it is he who is the recipient of the fewest monetary resources.

This response from the BEAC comes as some additional insight is gained into the manner in which the application of cryptocurrencies will develop in the CAR. 

MARA is a pan-African platform for managing these assets, and the president receives advice from it. MARA is controlled by the American company Coinbase, which is traded on the Nasdaq in New York City. 

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It is also understood that the procedure ought to be carried out throughout a particular time frame.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh