Read time: 3 minutes

Bank of Central African States urged to move on CBDC adoption

By , Freelance Investigative Journalist

There may soon be a common virtual currency used by members of the Central African Economic and Monetary Community (CEMAC), if plans by the Bank of Central African States (BEAC) pan out.

Chairman of the Board of Directors of BEAC Hervé Ndoba, also CAR’s Minister of Finance and Budget, has called CEMAC’s central bank to “work towards the creation of a Central Bank Digital Currency (CBDC)’ for its members – Cameroon, Chad, Central African Republic, Equatorial Guinea, Congo and Gabon.

Ndoba made the call in Cameroon’s economic capital Douala recently after an extraordinary session of the regional monetary authority.

Ndoba said a CBDC will boost financial inclusion and modernise payment infrastructures within CEMAC.

Once the virtual currency goes live, BEAC will become the first regional monetary authority to issue a digital currency. Several central banks in Africa continue to mull over the introduction of digital currencies, following in the footsteps of Nigeria which launched the e-Naira last year.

CBDC-related plans has been on the cards, especially after BEAC member the Central African Republic recently launched a cryptocurrency project in April 2022, to which the central bank initially and strongly objected.

After last Wednesday’s extraordinary meeting, the board said it noted CAR's request for assistance by the central bank to draft a regulatory framework for cryptocurrency in the sub-region.

Ndoba said, “After examining the financial and monetary implications of the law regulating cryptocurrency in Central African Republic on the regulatory architecture of the sub-region, the board of directors favourably welcome the expression by Central African Republic to adhere to the unique currency and respect the Statutes of the Bank of Central African States, regulatory texts of the monetary union and its community engagements.”

Daily newsletter