Cryptocurrency is one such phenomenon that can bring stability to the most unstable groups – despite being so highly volatile. It is precisely for this reason that several countries in Africa have decided to join forces for one national cryptocurrency.
CBDC for Africa
That writes Bloomberg based on a circulating email in the Bank of Central African States. This central bank issues the currency that serves Cameroon, the Central African Republic, Chad, Equatorial Guinea, Gabon and the Republic of Congo. The email was signed by Herve Ndoba, the chief executive of the central bank.
At the end of April, the Central African Republic announced that it had legally turned Bitcoin into money. But now we are also looking at a Central Bank Digital Currency (CBDC), which is not open source but was devised by the central bank. In another statement, the monetary union would have concluded that bitcoin (BTC) as legal tender (legal money) does not agree with the agreements of the countries within the central bank.
Obad crypto decision for Africa
The most striking thing about this is not that it opts for a cryptocurrency. According to a study by Ripple, the vast majority of central banks are working on a digital fiat currency, so that’s not surprising. The special thing is that the countries think that this is also possible for their countries. African countries are notorious for their instability. Many of these governments do not exist until the government is overthrown, for example by violent militias.
In addition, not everyone in these countries has a telephone, let alone access to the internet. Earlier this year, the Central African Republic came under fire. The country admittedly had ambitious plans for Bitcoin, while only 10% of the population had an internet connection at all. The IMF was not exactly happy about this.
At the same time, other African countries are also embracing digital assets. For example, the Central Bank of Nigeria has already announced that it is working on a CBDC, and the number of crypto users in Africa has grown by 2500% last year.