An African regulator told members of the Central African Economic and Monetary Community (CEMAC) that the ban on cryptocurrencies remains in effect. The regulator said the ban was aimed at ensuring financial stability within the economic bloc.
COBAC builds system to identify crypto transactions
African regulator the Central African Banking Commission (COBAC) has reminded members of the regional economic bloc, including the Central African Republic (CAR), that its ban on cryptocurrencies remains in effect. The regulator’s latest warning follows CAR’s recent decision to adopt bitcoin as the country’s “reference currency.”
According to Reuters Report, COBAC – CEMAC’s banking regulator – believes the ban will ensure financial stability. It will also take steps to identify and report crypto-related transactions, the regulator reportedly said in a statement following an extraordinary meeting on May 6.
“In order to guarantee financial stability and preserve customer deposits, COBAC has recalled certain prohibitions related to the use of cryptoassets in CEMAC. COBAC has decided to take several measures aimed at establishing a system for identifying and reporting cryptocurrency-related operation,” the regulator reportedly said.
Sovereignty of CAR
Ahead of the latest warning from the regional regulator, the Central African State Bank has Tell CAR rescinds its decision to make Bitcoin legal tender. Instead of adopting cryptocurrencies, the Central African Republic should focus on implementing CEMAC’s monetary policy, which will reduce endemic poverty, the central bank of the region said.
Meanwhile, the report cites Central African Republic government spokesman Serge Ghislain Djorie, who insists that COBAC has yet to formally notify his national regulator against cryptocurrencies again. Djorie said his government would respond when the COBAC document was obtained.
However, the spokesman suggested that his government would not be forced to change its stance by outsiders. “It has to be understood that every country has sovereignty,” he said.
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