January 23, 2023

Central African Republic Studies Regulating Crypto

Africa blockchain

Africa blockchain

Central African Republic studies entering the crypto field as it set up a committee of 15 persons to outline a draft law on regulating crypto and tokenization. 

In this regard, President of the Central African Republic Faustin-Archange Touadéra highlighted the role of cryptocurrency in developing his country’s economy, saying cryptocurrencies have the potential to eliminate the country’s financial barriers, according to Coin Telegraph

Touadéra asserted the importance of introducing a legal framework for cryptocurrency usage to create a business-friendly environment, noting: “With access to cryptocurrencies, the monetary barriers existing until now will disappear, the main objective of the measures adopted by the government being the development of the national economy.” 

The committee, which is tasked with outlining the crypto bill, includes 14 experts from five local ministries; Ministry of Justice, Promotion of Human Rights and Good Governance, Ministry of Waters, Forest, Hunting and Fishing, Ministry of Mines and Geology, Ministry of Town Planning, Land Reform, Towns and Housing and Ministry of Agriculture ad Rural Development. 

It will work on a legal framework that allows cryptocurrencies to operate in the Central African Republic and contributes to boosting the national economy.

Earlier in November, The International Monetary Fund (IMF) called for more regulation of the crypto industry and greater consumer production in African countries, according to a blog published by the global financial institution.

IMF referred to policymakers’ concerns that cryptocurrencies could be used to illegally transfer funds out of Africa and get around local rules to prevent capital outflows. The blog said: “Widespread use of crypto could also undermine the effectiveness of the monetary policy, creating risks for financial and macroeconomic stability.”

Despite being one of the fastest-growing crypto markets in the world, Africa’s crypto market is still the smallest in terms of crypto transactions reaching $20 billion per month in mid-2021, according to Chainalysis. Africa’s crypto market increased in value by more than 1,200% between July 2020 and June 2021.

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