African Central banks not happy with CAR bitcoin adoption

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• Opinion

The Central African Republic’s decision to make bitcoin legal tender in the country has put many backs up. A letter from the central banks cites the decision as having a very negative impact on Central Africa.

Following on from the extremely anti-bitcoin line adopted by the IMF, the Bank of Central African States (BEAC) has sent a letter to the CAR stating that bitcoin adoption is having a perilous effect on monetary stability in the region.

According to an article on CoinTelegraph, the letter was sent by the governor of the BEAC, and it outlined the “substantial negative impact” of the recent bitcoin adoption by CAR.

It goes on to describe how CAR’s move away from the CFA, the currency used by former French colonies, can have negative consequences for this group of Central African countries.

A quote from the letter reveals the extent of the concern by the states:

“This law suggests that its main objective is to establish a Central African currency beyond the control of the BEAC that could compete with or displace the legal currency in force in the CEMAC and jeopardize monetary stability.”

The concern of the other Central and West African states is maybe legitimate, given that this is the first ex-French colony to go its own way. However, the 14 African countries that utilise the CFA have their currency pegged to the euro, and many detractors there do not see a future in the current colonial currency.

Opinion

It must surely always be the decision of any sovereign country which particular currency it chooses to adopt. Bullying tactics from international financial organisations may or may not work, but one thing is sure, they are bound to have a detrimental effect on the country that they target.

The IMF, and all the central banks worldwide that subscribe to the hegemony of the dollar or the euro, have one major mission and that is to maintain their stranglehold on smaller developing countries.

If they can keep this up until central bank digital currencies are in circulation, then they can consider their job well done.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.