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African BEAC could launch a common digital currency

The Bank of Central African States (BEAC), which serves Cameroon, Gabon, Chad, the Republic of Congo, Equatorial Guinea and the Central African Republic (CAR), could become the first regional bank on the continent to launch a common digital currency.

The BEAC was invited to take the movement forward by its board of directors during meetings held on July 20 and 21 in Douala economic in Cameroon, Bloomberg reported Friday (July 22). The region’s central bank has also been asked to promote regional financial inclusion.

The council’s call to action was emailed in a statement signed by its leader, Herve Ndoba following the meetings, according to the report.

See also: Stablecoins, CBDCs face big hurdles before eliminating Fiat

Stable coins and central bank digital currencies (CBDCs) could replace fiat for payments in the pan-African region, but regulatory compliance and interoperability issues would need to be addressed first, PYMNTS reported on Thursday (July 21).

Since Nigeria launched e-naira in October 2021, several central banks in sub-Saharan Africa are considering digital currencies or are already in the trial stages of a launch plan, Bloomberg reported. The central bank’s move towards a common digital currency follows opposition to CAR’s adoption of bitcoin in April.

Read more: Central African Republic set to launch crypto sales

CAR plans to start selling its own cryptocurrency, Sango Coin, PYMNTS reported last week, with sales set at a minimum investment of $500, payable in cryptocurrency.

Sales of the new coin are set to begin on Monday (July 25) according to a Press release. CAR President Faustin-Archange Touadéra announced the adoption of Bitcoin as legal tender on April 21.

Bitcoin legal tender in the CAR is “incompatible with the agreements and conventions governing the Central African Monetary Union and the statutes of the Bank of Central African States,” the central bank told Bloomberg.

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