The Cameroon-headquartered Bank of Central African States (BEAC) has urged the Central African Republic (CAR) to annul a law it passed in late April that made the cryptocurrency Bitcoin legal tender. A letter from the bank’s governor to the CAR’s finance minister dated April 29, and made public last week, said the move suggests the CAR wants a currency beyond the bank’s control. BEAC said the CAR’s decision to make Bitcoin legal tender could compete with the Central African Franc (CFA), the region’s France-backed currency. The regional bank’s letter goes on to suggest using the cryptocurrency could upset monetary stability in the six-member Central African Economic and Monetary Community (CEMAC). CEMAC members, including the CAR, Cameroon, Chad, Gabon, Equatorial Guinea, and the Republic of Congo, use the CFA Franc as currency. The bank urged the CAR to comply with CEMAC in promoting economic and financial cooperation and avoiding policies that may lead to monetary fluctuations. But economists note cryptocurrency is growing in popularity and difficult to control.
SOURCE: VOA
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