(Business in Cameroon) - In response to pressing calls from fintech companies to regulate cryptocurrencies in the CEMAC region, the Central Bank of Central African States (BEAC) has firmly indicated its opposition. The central bank reiterated its stance during the first fintech forum held from January 29 to 31, 2024, in Douala, citing concerns that cryptocurrencies could deplete the community's foreign exchange reserves.

"Cryptocurrencies are not yet part of the central bank model. We all need to be aware that every time we buy from abroad, we spend our foreign exchange reserves and weaken our currency. If people think that crypto-assets are a way to preserve their savings, they should not forget that they are converting the CFA franc into the dollar or euro, which constitute our common reserves, thereby weakening our currency," stated Jean-Clary Otoumou, BEAC's Director General of Operations.

He however noted that negotiations are still ongoing regarding the creation of a blockchain (a technology enabling decentralized, secure, and transparent transaction tracking) or a central bank digital currency. He also emphasized that "our perspective differs from that of crypto-asset players and fintech companies" which view the banking system as cumbersome and restrictive and advocate blockchain as a safe and agile medium while calling for regulatory measures.

"Today, most merchants buying from Asia place orders and pay their suppliers in cryptocurrency. This has the advantage of streamlining procedures and reducing delays," explained Armand Gaëtan Ngueti, CEO of UBTS and President of the Blockchain Association Cameroon (BAC), which promotes the adoption of digital currencies.

According to Ngueti, the African blockchain market represents annual transactions of $100 billion, equivalent to over CFA60,000 billion at the current USD exchange rate. According to the study on the development of cryptocurrency and Ponzi scheme activities in Cameroon, presented on August 24, 2023, by the Ministry of Finance (Minfi), Cameroon has almost 900,000 cryptocurrency users or 6.76% of the active population. This places the country 11th in Africa for cryptocurrency users. Nigeria dominates the ranking with 22.33 million users.

Despite this, BEAC maintains its opposition to cryptocurrency regulation, even as the Central African Financial Market Supervisory Commission (COSUMAF) excluded cryptocurrencies from its regulatory framework on August 1, 2022. The Central African Republic (CAR) also appears to have halted the use of Bitcoin as legal tender.