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The Central African Banking Commission issues warning against cryptocurrencies, Central African Republic: Every country has its sovereignty

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The Central African Banking Commission issues warning against cryptocurrencies, Central African Republic: Every country has its sovereignty

According to Reuters, just weeks after the Central African Republic adopted Bitcoin as legal tender, the Banking Commission of Central African States (COBAC) issued a warning on the 13th prohibiting cryptocurrencies to ensure financial stability.

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According to a report by Reuters, just weeks after the Central African Republic adopted Bitcoin as legal tender, the Central African Banking Commission (COBAC) issued a reminder on the 13th to ban cryptocurrencies, aiming to ensure financial stability.

The COBAC is responsible for overseeing the banking sector of the Central African Economic and Monetary Community (CEMAC), and this announcement comes after the stablecoin TerraUSD collapsed.

The Central African Republic's presidential palace announced Bitcoin as legal tender on April 27, making it the second country globally to adopt Bitcoin after El Salvador. Analysts and crypto experts are not optimistic as they view the Central African Republic as one of the poorest countries with low internet usage and unreliable electricity.

While the Central African Republic announced this policy, it provided little accompanying measures, leaving many implementation challenges.

Serge Ghislain Djorie, the government spokesperson of the Central African Republic, stated that they have not received formal notification from COBAC regarding the crypto ban and emphasized that "every country has its sovereignty."

The banking commission stated in its release that it held a special meeting on May 6 to study the impact of cryptocurrencies on the economy and monetary community of the six Central African countries, reminding regional economic group members including the Central African Republic that the ban on cryptocurrencies remains in effect. The ban related to crypto assets includes transactions, conversions, or settlements involving cryptocurrencies and prohibits their use as a means of assessing assets or liabilities.