Bank of Central African States Calls for a Single Digital Currency
- The Bank of Central African States has urged regional banks to adopt a central bank digital currency for modernized payments.
According to fresh reports, the Bank of Central African States could be close to releasing a central bank digital currency at the request of its board. The bank, which mostly serves African nations like Gabon, Chad, Cameroon, the Republic of Congo, the Central African Republic, and Equatorial Guinea, is planning to increase digital financial inclusion.
The Central African Republic became the first African country to fully adopt Bitcoin when it announced the digital asset as legal tender. Although the move was controversial and attracted heavy criticism, other central African countries seem to have grown more comfortable with digital assets.
The Bank of Central African States’ board reportedly sent out a mail, urging regional banks to modernize payment by introducing a digital currency. This would be the first common digital currency in Africa. Although the Central African Republic was the first to adopt bitcoin as legal tender, it did not give room for any central bank digital currency.
The Central Bank of Nigeria became one of the first on the continent to introduce a CBDC, named the eNaira, late last year. In addition, the Reserve Bank of South Africa is still evaluating the possible advantages of a CBDC through its Project Khokha program.
Hurdles to Crypto Adoption in Africa
The growing interest in digital assets in Africa is a healthy sign. However, there are several hurdles to cross before crypto and digital assets can fully become a part of the system. For example, countries in Sub-Saharan Africa will experience difficulty in bringing cryptocurrencies and CBDCs to places with insufficient electricity for both mining and transfers.
According to reports, the CAR and Chad both have among the lowest percentages of the population with access to electricity. This could be a huge stumbling block. The CAR recently outlined plans to develop network infrastructure which it said will help the country in its bid to become a hub for cryptocurrencies.
A reliable power supply is one of the many hurdles facing crypto adoption in Africa. There is also no organized system for teaching cryptocurrencies on the continent. However, it has been noted that a small number of important individuals have a huge influence on increasing public knowledge and understanding of crypto.
Foundations, bitcoin exchanges, celebrities, and private companies are all playing minor roles, but there is a lot to cover in crypto education in Africa. At best, only those in developed regions would utilize cryptocurrencies, while those in rural areas would have no knowledge of blockchain.
Twitter, YouTube, Facebook, TikTok, and Instagram are the most popular social media platforms used by Africans to learn about Bitcoin and other cryptocurrencies. Additionally, they read books, blog posts, and exchange resources made available by market titans like Binance, and Coinbase. Most African media outlets avoid promoting Bitcoin and other cryptocurrencies out of concern for the reactions of local authorities as well as for potential restrictions and bans enforced by central banks.
Africa is a prime target for cryptocurrency scammers from around the world due to the continent’s lack of crypto education. These ponzi schemes guarantee significant profits but end up stealing both the funds and trusts of Africans in digital assets.