Central African Bank criticizes CAR adoption of Bitcoin

The Central African bank is tightening down on Bitcoin transactions after the Central African Republic designated Bitcoin as legal currency without consulting its regional monetary authorities.

The Bank of Central African States, which already does not recognise cryptocurrencies, has now made it illegal for any institutions to work with digital currency payment platforms or to recognise them as assets.

The Central African Banking Commission (COBAC), which governs the banking industry in the six-nation Economic and Monetary Community of Central Africa (CEMAC), said the limit was required to ensure financial stability.

The government of the Central African Republic stated on April 27 that bitcoin had been approved as legal cash, making it the second country after El Salvador to do so.

The Central African Republic’s leadership argues that adopting Bitcoin will help the country’s economy recover and thrive, as well as stabilise the country, which has been devastated by a decade-long civil war.