Crypto

Cemac: a regulatory framework for cryptocurrencies in the making

Cryptocurrency was at the center of discussions in Douala during the extraordinary meetings of the Beac Board of Directors and the Ministerial Committee of the Central African Monetary Union (UMAC), held on July 20 and 21, respectively. The work was led by Hervé Ndoba, also the Minister of Finance and Budget of the Central African Republic, whose country unilaterally passed a law three months ago regulating the circulation of cryptocurrencies at the local level. In examining the impact of this law on the community’s regulatory architecture in monetary and financial matters, the committee acknowledges that certain provisions are “inconsistent with the conventions and agreements” of Umac and Beac.

See also: Cryptocurrency: plaintiffs collective demand more than 5.2 billion F from Emile Parfait Simba

However, the Central Bank acknowledges that the Central African Republic has approached it, as well as the competent Community authorities, for assistance in developing a regulatory framework governing crypto assets in the Central African region. The request, which was well received, especially as the CAR had previously reaffirmed its “commitment to the single currency and respect for the Bank of Central African States’ Charter, the texts governing the Monetary Union, and its commitment to the community,” reads the Board’s final press release. 24 hours later, a Umac ministerial committee signed on to the request, suggesting that Beac “accelerate the process of developing a regulatory framework governing cryptoassets at Cemac.”

See also: Cryptocurrencies in the CAR: what are the risks for Cameroon?

appeasement

It may be too good to rejoice in the camp of Faustin Archange Touadéra, but the will expressed by the CEMAC finance and economy ministers to create a regulatory framework for digital assets may allow the country to quietly continue the process of “cryptoization” of its economy. However, at the time of the adoption in April last year, the law on cryptocurrency in the CAR has drawn the ire of other member states, as well as sub-regional organizations. According to experts, the Central African Republic was threatened with expulsion from the Cemac zone and the FCFA. By consecrating the use of cryptocurrency as a means of payment in its territory, the country violated the convention governing the Central African Monetary Union, which proclaims the CFA franc as the legal currency in the area and grants the exclusive privilege of issuing currency in the territory. of each Member State in the IBC.

Along with Beac, the Central African Commission for the Supervision of Financial Markets (Cosumaf) is preparing another structure to regulate this time the public offering of cryptocurrencies. At the same time, it is understood that cryptocurrencies are by their nature digital assets, and not a means of payment.

Read also: Cryptocurrency at Cemac: Cobac Fortitude, Employer Reserves

Sangocoin is already on the ground

Just a coincidence? The Umac Council took place on the same day that the official launch of Sangocoin was to take place. A local cryptocurrency issued by the CAR with “Bitcoin” as a safe haven. For this purpose, 210 million tokens were issued at a price of $0.10 per unit, or almost 64 FCFA. Through this, the country hopes to gather maximum resources from investors around the world in order to really accelerate its economic development. Today, the Central African Republic is one of the poorest and most vulnerable countries in the world, despite its wealth of natural resources. Although the CAR has impressive agricultural potential, vast mineral resources, and extensive forests, the population does not benefit from these opportunities, and the CAR ranks last in the human capital and human development indices. The country has been mired in a cycle of recurring violence for more than 40 years due to weak institutions and citizens’ lack of access to basic services. According to the World Bank, only 14.3% of the Central African population has access to electricity, with tariffs ranging from about 35% in Bangui to about 0.4% in rural areas.

Read also: Nigeria and South Africa in the top 10 countries that own or use the most cryptocurrencies in the world

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