REGULATION

Triple-digit inflation for years prompts Sudanese to turn to crypto? Central bank issues warning, human rights foundation strategist: Ban on the horizon

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Triple-digit inflation for years prompts Sudanese to turn to crypto? Central bank issues warning, human rights foundation strategist: Ban on the horizon

As inflation rates soar, the Central Bank of Sudan (CBOS) warns citizens against using cryptocurrencies, citing high risks associated with cryptocurrencies.

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According to the Sudan News Agency (SUNA), the Central Bank of Sudan has issued a statement indicating that the risks associated with cryptocurrencies include financial crimes, electronic piracy, value loss, and the legal risks associated with handling these currencies. Cryptocurrencies are not classified as legal tender, and according to the current laws and regulations in the country, they lack protection and are not issued by authorized or recognized institutions.

The Central Bank of Sudan has observed a significant increase in cryptocurrency marketing activities on social media platforms and has issued a warning. In addition, Sudan has been experiencing persistently high inflation rates. According to data from the Central Bureau of Statistics in Sudan, the inflation rate was 163.26% in 2020, skyrocketed to 359.09% in 2021, and slowed down to 258.40% in February 2022. Faced with triple-digit inflation rates, people have started investing in cryptocurrencies.

Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, tweeted that the increasing use of cryptocurrencies by more people has made the Central Bank of Sudan very uneasy. In addition to warning the public against adopting cryptocurrencies, the government is reportedly in the process of implementing a ban on cryptocurrencies.

Sudan, located in East Africa, is the third-largest country in terms of land area in Africa with a population of 43.8 million. Before the independence of South Sudan, it was the largest country in Africa. After 65 years of civil wars and coups, Sudan's internal affairs and economy have always been in a state of turmoil and unrest.

This article is republished with permission from Horizon News Network