Attention ! Monetary counteroffensive – The Central African Republic shakes the central bank of the region, which could issue its digital currency to combat a possible progression of Bitcoin (BTC) in Central Africa.
A digital currency against the Central African Bitcoin
Bitcoin could ironically become the father of a Central bank digital currency (MNBC) common to the 6 member states of the Central African Monetary Union (UMAC).
The Director of the Bank of Central African States (BCAS), Herve Ndobaa ask institution’s board will work on a digital currency for the region in reaction apparently to the decision of the Central African Republic to legalize in Bitcoin.
By making such a decision, the Central African Republic, unsurprisingly, attracted the critics the International Monetary Fund (IMF) and the Regional Central Bank. But following in El Salvador’s footsteps, the Central African Republic has yet to did not back downdespite these criticisms.
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Legal Bitcoin in the Central African Republic: An Outlaw Provision?
The Central African Republic, which is a member of UMAC along with Cameroon, Gabon, Equatorial Guinea, the Republic of Congo, and Chad, has decided to challenge BCAS.
The institution had concluded, a few days before Hervé Ndoba’s intervention, that the law that legalized Bitcoin in the country was “incompatible with the agreements and conventions that govern” UMAC and the Regional Central Bank.
Towards a common MNBC and the regulation of cryptocurrencies
This call for the creation of a common digital currency is in line with this logic, not necessarily substantiated, according to which a MNBC let’s fight against bitcoin adoption and cryptocurrencies in general.
Proponents of digital currency will further argue that a MNBC for Central Africa will offer a modern payment structure to the region, while promoting thefinancial inclusion.
In addition to this proposal for a common central bank digital currency, Hervé Ndoba also mentioned the importance of a single legal framework developed by BCAS to regulate cryptocurrencies in countries of theUMAC.
Despite these short cuts in the speeches of central bankers, the Bitcoin and the MNBC Are actually not comparable and not substitutable. One is a decentralized deflationary currency. The other is centralized and inflationary. But while some observers believe that Cryptocurrencies can coexist with digital currencies central banks, the facts seem to show a completely different reality, more belligerent between these two worlds.
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