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COBAC Bans Cryptocurrency In Cemac Regions

Cryptocurrencies are now banned in the Cemac zone (Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea). This decision results from the will of the COBAC to “guarantee financial stability and preserve customer deposits”.

What we are experiencing with the recent ban of crypto in the CEMAC region is a reaction to the move to consider bitcoin as a legal tender by a multipolar world ally (central Africa republic )

The sub-regional institutions continue to ban cryptocurrencies as a means of payment in the countries of the Economic and Monetary Community of Central Africa (CEMAC).

Meeting on 6 May 2022 during an extraordinary session, it was the Banking Commission of Central Africa COBAC categorically rejected any use of cryptocurrencies in financial transactions in the region.

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Central Africa’s regional banking regulator sent out a reminder on Friday about its ban on cryptocurrencies, weeks after the Central African Republic, a member state, made bitcoin legal tender.

COBAC Bans Cryptocurrency In Cemac Regions
COBAC Bans Cryptocurrency In Cemac Regions

The Banking Commission of Central Africa (COBAC), which regulates the banking sector in the six-nation Economic and Monetary Community of Central Africa (CEMAC), said the prohibition was meant to ensure financial stability.

The announcement came as cryptocurrencies nursed large losses on Friday after the collapse of TerraUSD, a so-called stablecoin, rippled through markets. 

The Central African Republic’s presidency announced on April 27 that bitcoin had been made legal tender, making it only the second country to do so after El Salvador.

At the time, analysts and crypto experts said they were puzzled by the move in one of the world’s poorest nations where internet use is low, conflict is widespread and electricity is unreliable.

The government has provided few details about its reasoning and questions remain about implementation.

Reached by phone on Friday, government spokesman Serge Ghislain Djorie told Reuters that the Central African Republic had received no official notice from the COBAC about a crypto ban, although he had seen the news in the press and on social media.

“We are waiting for the document to be officially transmitted before we can respond. It must be understood that each state has sovereignty,” Djorie said.

The banking commission held a special meeting on May 6 to examine the impact of cryptocurrencies in the zone, it said in the statement on Friday.

“In order to guarantee financial stability and preserve client deposits, COBAC recalled certain prohibitions related to the use of crypto-assets in CEMAC,” it said.

These include the holding of cryptocurrencies of any kind, the exchange, conversion, or settlement of transactions relating to cryptocurrencies, and a bar on them being used as a means of evaluating assets or liabilities, it said.

“COBAC has decided to take a number of measures aimed at setting up a system for identifying and reporting operations related to cryptocurrencies,” it added.

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