Over the past few days, several Central African countries have expressed their intent to elaborate a national cryptocurrency framework. They see those innovative payment mechanisms as a means to create new opportunities and added value.

 In the Central African Republic (CAR), the national assembly, last Friday (April 22), passed bill N°22 governing cryptocurrency transactions in the country. The bill officially approves cryptocurrencies as payment solutions in the country and chooses Bitcoin as the reference currency. On April 26, President Faustin-Archange Touadera (photo) praised the bill describing it as a decisive step toward new opportunities.  

According to the cryptocurrency bill, economic agents are now required to accept cryptocurrencies as payments for their goods and services. The innovative payment mechanism can also be used to pay for public services and taxes. However, the official currency for accounting purposes remains the CFA Francs (XAF). 

In the country, cryptocurrency transactions will be tax-free and official exchange rates will be floating (rates determined by market forces). Likewise, crypto miners are considered independent actors but they are required to report their incomes from such activities. 

Crypto transactions will be regulated by ANTE, the newly created agency that will also manage all the ATMs installed by the government across the country. 

For some analysts, CAR -which is looking for ways to revive its economy- shouldn’t have passed the cryptocurrency bill without even doing the base works required and addressing crucial issues. In 2020, the  International Telecommunications Union (ITU) pointed at the country’s weak legal and technical cybersecurity framework. The government is yet to address that issue because article 18 of the crypto bill informs that legal frameworks and agencies will be created to oversee cybersecurity and personal data protection. 

Notwithstanding critics, State Minister Obed Namsio indicates that the cryptocurrency bill marks the beginning of a new phase in the country’s economic revival and peace consolidation plan in line with the government’s agenda, “ which aims for strong and inclusive growth that favors economic development.” 

The central bank BEAC is yet to officially comment on the bill. However, the Central African government promises to ensure cryptocurrencies are automatically convertible into the legal tender by creating a trust. 

Muriel Edjo